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?
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