The Executive Board of the International Monetary Fund (IMF) has approved a proposal to increase the quota.
- The proposal involves a 50% quota increase allocated to members in proportion to their current quotas.
- The proposal will be considered and voted on by the Board of Governors, after which it will be made effective.
- The IMF’s Board of Governors conducts general quota reviews quotas at least every five years.
- As on date, India has a quota of 13,114.4 SDR which denotes a share of 2.75 per cent.
- Based on this, India has 1,32,063 votes, which denotes a share of 2.63 per cent. All these will grow when an increase in quota will be made effective.
Benefits of quota increase
- The quota increase would help safeguard global financial stability by enhancing the IMF’s permanent resources and reducing reliance on borrowed resources.
- The proposal also includes a call for work to develop, by June 2025, possible approaches as a guide for further quota realignment.
About IMF Quota
- An individual member country’s quota broadly reflects its relative position in the world economy.
- Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account.
- These determine the maximum amount of financial resources a member is obliged to provide to the IMF.
- These are also key determinants of voting power besides the maximum amount of loan a member can avail.
