![Bl[i]tZ](/data/avatars/m/41/41754.jpg?1322350299){kind=avatar}
Bl[i]tZ
FULL MEMBER
- Jul 30, 2011
- 1,374
- 0
The Union Cabinet on Tuesday approved a proposal to increase India's contribution to the International Monetary Fund (IMF) to make it the eighth largest shareholder in the multilateral lending agency.
Briefing the media on Cabinet approval for hike in the country's quota in the IMF following its ‘Fourteenth General Review of Quotas', Information and Broadcasting Minister Ambika Soni said: “India's quota share at the IMF will increase from 2.44 per cent to 2.75 per cent, making it the eighth largest quota holding country at the IMF”.
Significantly, while India's gain in terms of quota share is the seventh largest in the 14th round of quota review, in absolute terms it will mean an increase from SDR (special drawing rights) 5,821.5 million to SDR 13,114.4 million. Ms. Soni said that when the 14th round of quota review came into force it would result in a major realignment of quota shares among members and thereby reflect the global realities better.
In keeping with the demand of emerging nations, including India, for a greater say in the IMF following their increased economic clout after the global meltdown in 2008, all the BRIC (Brazil, Russia, India and China) nations will now figure among the 10 largest quota shareholders in the IMF.
Capital infusion in Nabard
In another decision, the Cabinet approved a Rs.3,000-crore capital infusion in Nabard (National Bank for Agriculture and Rural Development) over a two-year period to help it in mobilising higher resources from the market.
Ms. Soni said Nabard's capital base would be augmented by Rs.3,000 crore by way of government equity in two instalments — Rs.1,000 crore in 2011-12 and Rs.2,000 crore during 2012-13.
This would raise the paid-up capital of the apex farm and rural development bank to the authorised level of Rs.5,000 crore, she said.
As per the norms laid down by the Reserve Bank of India (RBI), the outstanding total resources mobilised by a financial institution at any point of time should not exceed 10 times its net owned funds (NOF).
With the infusion of additional share capital, Nabard's NOF would now stand increased and thus enable higher borrowings from the market.
The Hindu : Business / Economy : Cabinet approves hike in India's IMF quota
US 16.76
China 3.81
India 2.78
Pakistan 0.44
Briefing the media on Cabinet approval for hike in the country's quota in the IMF following its ‘Fourteenth General Review of Quotas', Information and Broadcasting Minister Ambika Soni said: “India's quota share at the IMF will increase from 2.44 per cent to 2.75 per cent, making it the eighth largest quota holding country at the IMF”.
Significantly, while India's gain in terms of quota share is the seventh largest in the 14th round of quota review, in absolute terms it will mean an increase from SDR (special drawing rights) 5,821.5 million to SDR 13,114.4 million. Ms. Soni said that when the 14th round of quota review came into force it would result in a major realignment of quota shares among members and thereby reflect the global realities better.
In keeping with the demand of emerging nations, including India, for a greater say in the IMF following their increased economic clout after the global meltdown in 2008, all the BRIC (Brazil, Russia, India and China) nations will now figure among the 10 largest quota shareholders in the IMF.
Capital infusion in Nabard
In another decision, the Cabinet approved a Rs.3,000-crore capital infusion in Nabard (National Bank for Agriculture and Rural Development) over a two-year period to help it in mobilising higher resources from the market.
Ms. Soni said Nabard's capital base would be augmented by Rs.3,000 crore by way of government equity in two instalments — Rs.1,000 crore in 2011-12 and Rs.2,000 crore during 2012-13.
This would raise the paid-up capital of the apex farm and rural development bank to the authorised level of Rs.5,000 crore, she said.
As per the norms laid down by the Reserve Bank of India (RBI), the outstanding total resources mobilised by a financial institution at any point of time should not exceed 10 times its net owned funds (NOF).
With the infusion of additional share capital, Nabard's NOF would now stand increased and thus enable higher borrowings from the market.
The Hindu : Business / Economy : Cabinet approves hike in India's IMF quota
US 16.76
China 3.81
India 2.78
Pakistan 0.44
