Leaders at the BRICS Summit - where the Indian delegation was headed by Prime Minister Manmohan Singh - approved the creation of a bank on the lines of the World Bank and the International Monetary Fund (IMF) to address the development needs of emerging and poor economies.
The next 12 months will be spent on working out the modalities of creating the bank, it was announced on the conclusion of the plenary of the two-day Summit.
Finance ministers of Brazil, Russia, India, China and South Africa had agreed on the BRICS bank on Tuesda.
Finance Minister P Chidambaram represented India at the meeting.
The five-member BRICS bloc collectively accounts for about 40 percent of the world's population, 30 percent of the world's land mass, 20 percent of the gross domestic product in real terms and 26 percent of purchasing power.