ORGANISATION AND FUNCTIONS

Organisation o] lite fluid The International Monetary Fund (I.M.F.) was con. titutcd hy subscriptions from members agree  to participate in the Fund amounting to 8.5 billion dollars out of which India”s contribution was 400 million dollars. The subscription was to be partly in the form of gold and partly in domestic currency. A member country is required to  pay 25 cent of its quota or 10 per cent of its holdings of  gold, whichever is smaller, in the form of gold. There sources of the I.M.F. are-thus  gold and partly currencies of the comics. the latter being kept in the central banks of the luntnes concerned. Member’ liability to pay a part of its quota in gold has been no w (1976) abrogated under the New Articles.

In 195 ” the ere was made a general increase of 50 per cent in members’ quotas and a specially higher increase for Canada, Germany and Japan. In 1965 and in 1970, quotas were again raised by 25 per cent each time. India’s quota. which !vas originally equal to $ 400 million. was raised to $ 600 million in 1958 and $ 750 million in 1965 and. quently to $ 940 million. A substantial increase e in Fund quotas was made in 1979 from SON 40 billion to SOR 60 billion and  subsequently in February 1983 making a 47 per cent increase in member quotas raising the funds’ resources from about $ 66,O(){) million to 9IUl(X) million.