New Delhi, Oct 13 (KNN) In order to enhance trade and economic relations among BRICS countries, Cabinet today approved MoU between EXIM Bank on General Cooperation with New Development Bank, along with other financial institutions of BRICS nations.

A Cabinet release said it has approved signing of a Memorandum of Understanding (MoU) on General Cooperation with NDB through the BRICS Interbank Cooperation Mechanism by Government at the level of Secretary, Department of Economic Affairs/ Export Import Bank of India (EXIM Bank).

The proposal will enhance trade and economic relations among the BRICS countries. There is no financial implication involved with signing of the MoU. The participating institutions from the BRICS nations will be benefitted by this MoU.

The MoU is a non-binding umbrella agreement aimed at establishing a cooperation framework in accordance with the national laws and regulations, besides skills transfer and knowledge sharing amongst the signatories.

Further, establishment of the NDB reflects the close relations among the BRICS countries and provides a powerful instrument for increasing their economic cooperation and help India play an enhanced international role.

Therefore, keeping in view the strategic relevance of cooperation for sustainable development and inclusive economic growth, the signing of MoU is necessary in the context of cooperation extended by the Members in various forms for promoting and facilitating trade of goods and services as well as investments in mutual projects among the BRICS countries, said the Cabinet.