The union cabinet today approved the increase in India's quota in the International Monetary Fund (IMF) as revised under the fourteenth general review of quotas.
India's quota share at the IMF will increase from 2.44per cent to 2.75 per cent, making it the eighth largest quota holding country at the IMF. India is the seventh-largest gainer in terms of quota share during the current review round. In absolute terms India's quota will increase from SDR 5,821.5 million to SDR13,114.4 million.
The fourteenth general review of member quotas of the IMF, when it takes effect, will result in a major realignment of quota shares among in a way to better reflect the global realities.
The BRIC countries, comprising Brazil, Russia, China and India would now be among the 10 largest shareholders of the IMF once the review takes effect.
The fourteenth general review of quotas is to be completed by January 2013. India has already committed to provide $14 billion (around Rs70,000 crore) towards its increased share and a part of that amount is currently being used under the New Arrangements to Borrow (NAB).
The NAB is a tool developed at the height of the 2008 financial crisis to bail out debt-stricken countries such as those in Eurozone.