Q. Consider the following statements International Monetary Fund (IMF):
1.IMF review member’s quotas once in ten years.
2.At present India’s quota is 4.75 percent.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D
Notes:

Explanation: IMF reviews members’ quotas once in every five years—last done in December 2010—here, India consented for its quota increase.

  • After this India’s quota (together with its 3 constituency countries) has increased to 2.75 per cent (from 2.44 per cent) and it has become the 8th (from 11th) largest quota holding country among the 24 constituencies.
  • In absolute terms, India’s quota has increased to SDR 13,114.4 million (from SDR 5,821.5 million) which is an increase of approximately US $ 11.5 billion or Rs. 56,000crore).
  • While 25 per cent of the quota is to be paid in cash (i.e., in ‘Reserve’ currency), the balance 75 per cent can be paid in securities.

Source: TMH Ramesh Singh