IMF ropes in India as financial transactions plan member
Dubai: The International Monetary Fund (IMF) has asked India to become a member of its financial transactions plan. The plan includes around 30 countries, which contribute up to 40 per cent of their membership quota obligations in cash. Officials were quoted as saying that foreign exchange reserves of almost $88 billion had boosted India's confidence to lend to the IMF in cash instead of using its special drawing rights.

Special drawing rights include a country's contribution to its membership quota obligation by way of government securities, which can be encashed by the IMF when it needs funds for any of its 184 member countries. The officials said developed countries like the US, the UK, France, Germany and Japan chipped in 40 per cent of their membership quota obligations in cash, against 10 per cent by most of the developing and poor countries.
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