India along 20 other countries signed the Memorandum of Understanding (MoU) to be its founding member.
"It is a very positive development in the sense that it opens up more borrowing opportunities. As another window of financing we welcome it," Singh said.
"There is tremendous requirement of funding in India for the a trillion USD infrastructure development. It is not possible for the Indian banking sector to manage that kind of investment," despite the presence of Asian Development Bank (ADB) and other multilateral financing bodies.
"More is required beyond that. Therefore, if we get support from the BRICS Development Bank and AIIB offer further options and availability of finance which we need to tap into," he said.
Singh, who is here to attend a separate event, said it will be mostly private sector which will access such funding.
"They will do it on terms favourable, transparent and good for them," he added.
But bank need to function on certain norms of governance, standards and transparency, he said.
Singh said India should access investments from China as it is plush with funds.
"China is a large economy with trade and manufacturing prowess. It also has funds which we have to recognise. Therefore, businesses in India can leverage that funding also it will be one more addition to technology and market related relations," Singh said.
India along with 20 other countries on Friday signed an agreement to become founding members of the China-backed AIIB to aid the infrastructure development in the Asian region and reduce the dependence on Western-dominated World Bank and IMF.

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