• AIIB is a multilateral development bank created to improve social and economic outcomes in Asia. 
  • It is headquartered in Beijing and began its operations in January 2016.
  • It had 57 members originally. The membership of the bank has now grown to 97 approved members worldwide. 27 prospective members including Armenia, Lebanon, Brazil, South Africa, Greece, etc exist.
  • By investing in sustainable infrastructure and other productive sectors in Asia and beyond, it will better connect people, services and markets that over time will impact the lives of billions and build a better future.
  • The first AIIB Board of Governors meeting was held in Beijing, China in 2016.


  • Membership in the AIIB is open to all members of the World Bank or the Asian Development Bank. This is further divided into regional and non-regional members.
  • Regional members are those located within areas classified as Asia and Oceania by the United Nations.
  • Unlike other multilateral development banks, the AIIB allows for non-sovereign entities to apply for membership, assuming their home country is a member.
  • Hence, sovereign wealth funds or state-owned enterprises of member countries could potentially join the Bank.

Financial Resources of AIIB

  • The AIIB's initial total capital is USD 100 billion divided into 1 million shares of 100 000 dollars each, with 20% paid-in and 80?llable.
  • Paid-Up Share Capital: It is the amount of money that has already been paid by investors in exchange for shares of stock.
  • Called-Up Share Capital: Some companies may issue shares to investors with the understanding they will be paid at a later date.
  • This allows for more flexible investment terms and may entice investors to contribute more share capital than if they had to provide funds upfront.
  • China is the largest contributor to the Bank, contributing USD 50 billion, half of the initial subscribed capital.
  • India is the second-largest shareholder, contributing USD 8.4 billion.

Voting Rights

  • Largest shareholder is China with 26.61 % voting shares, and India (7.6%), Russia (6.01%) and Germany (4.2 %) are the next contenders.
  • The regional members hold 75% of the total voting power in the Bank. 

AIIB Lending

  • The recipients of AIIB financing may include member countries, as well as international or regional agencies concerned with the economic development of the Asia-Pacific region.
  • AIIB can fund projects outside Asia provided that it supports connectivity with Asia or it is for the global general public good. The upper limit for non-regional loans is 25%.
  • The key sectors for the Bank are Energy, Transport, Water and Urban development.

AIIB and India

  • Despite the aforesaid issues between India and China, the AIIB plays a crucial role in the consensus-building process in the region.
  • The third annual meeting (2018, Mumbai) of the AAIB was held under the theme of “Mobilising Finance for Infrastructure: Innovation and Collaboration”, India has highlighted its openness to infrastructure collaboration.
  • India is the largest beneficiary of AIIB financing for infrastructure projects. The AIIB has approved five projects in India. These are —
    • Bangalore Metro Rail Project,
    • Transmission System Strengthening Project,
    • Gujarat Rural Roads (MMGSY) Project,
    • India Infrastructure Fund, and
    • Andhra Pradesh 24×7 – Power For All project.