The World Bank has been India's largest source of external capital and, in turn, India has been the largest borrower from the World Bankwith loans accounting for India's share of IFC loans has been somewhat less: By the end of the decade, India's mounting debt problems became an important factor in the launch of the IDA, the soft loan affiliate of the World Bank WB group.
The International Monetary Fund, which is briefly called IMF, is one of the twin institutions which were established as a result of discussion among the monetary and financial delegations of the member countries of the United Nations held at Bretton Woods U.
Its establishment on 1st March,is a great landmark in the history of international economic relations, particularly in the monetary field. IMF and its Membership: The funds of the IMF. Recently, the requirement of gold payment has been done away with. Under the IMF articles, a member country can purchase foreign currency not exceeding one- fourth of its quota in any month period.
The SDRs are designed to supplement the gold and the reserve currencies, viz. Main Functions of IMF: The main functions of the International Monetary Fund are: Each member-country on joining the Fund has to declare the par value of its currency in terms of gold or U.
For further changes up to 10 per cent the IMF will have to be consulted which will have to give the acceptance or refusal to the proposed change within 72 hours. The internal policies of the member-countries to restore equilibrium are not to be interfered with by the IMF.
When a country suffers from a deficit in its balance of payments on current account, it can obtain from the IMF, in exchange for its own currency, the currency which it needs to pay off its deficit. There is, however, a limit to the amount which it can thus obtain.
Currencies which are in great demand by the member- countries and IMF cannot meet all demands for them are declared as scarce currencies and are rationed by IMF among the countries needing them.
IMF has to see that the member-countries do not impose exchange restrictions on current transactions. In view of the abnormal conditions existing after the war. IMF allowed a period of transition extending over 3 years during which the members could remain such restrictions.
The period is over and many countries have relaxed their exchange restrictions. However, their complete removal is not likely in the near future. Leading Mechanism by IMF: The IMF helps its member countries under a number of different programmes: The most widely used way to lend by IMF is stand-by arrangements.
A member country can borrow from IMF from this credit tranche to meet its balance of payments difficulties. A certain norms regarding government expenditure and money supply targets have to be fulfilled before resources are released, especially in higher credit tranches.
It is expected that government of a country borrowing under this arrangement will adopt measures to rectify the balance of payments disequilibrium. Typically, stand-by arrangements last for months period.
Repayments of loans under this arrangement are made within years of each drawing the money from IMF. The Extended Fund Facility was created in to help the developing countries over longer periods upto 3 years than stand-by arrangements months.
Further, in this facility developing countries can borrow more than their quota.
The loans taken under this facility can be paid back over a period of years.China–IMF relations. Jump to navigation Jump to search.
This article has multiple issues. India, China and South Africa. With a larger combined voting share and voice, the BRICS has been more effective at renegotiating IMF governance. China and IMF SDR. Additional information can be found on the India and IMF country page, including IMF reports and Executive Board documents that deal with India.
India and the IMF Country Page At a Glance: India's Relations with the IMF. India's relations with the International Monetary Fund: India and the IMF has a positive relationship.
The IMF has provided financial assistance to India, which has helped in boosting the country's economy. – A Special Lecture by vetconnexx.comas IAS – Introduction.
This paper India and the International Monetary Fund is divided into 4 parts – India at Bretton Woods ; India-IMF relations in program years – , and ; IMF-India relations in Growth Years and IMF Reforms.
INTERNATIONAL MONETARY FUND (IMF), RELATIONS WITH. INTERNATIONAL MONETARY FUND (IMF), RELATIONS WITH The Bretton Woods Conference was convened in for the purpose of formulating postwar currency plans, as a result of which the International Monetary Fund (IMF) was established.
India, though not yet independent, was among the countries whose representatives . IMF and India Relations India is among one of the developing economies that effectively employed the various Fund programmes to fortify its fiscal structure.
Through productive engagement with the IMF, India formulated a consistent approach to expand domestic and global assistance for economic reforms.5/5(11).