Finance Minister Arun Jaitley has expressed disappointment over the slow pace of IMF quota reforms and said any further delay would erode the legitimacy and credibility of the multi-lateral organisation.
"The emerging risks to the global economy call for enhanced surveillance by the IMF. The IMF needs to be sufficiently resourced to be able to fully discharge this responsibility. It also needs to function as a quota-based institution," he said at the meeting of the International Monetary and Financial Committee (IMFC).
Given that there is a broad agreement on maintaining the current overall lending capacity of the Fund and that the IMF's existing resource pool is excessively tilted towards borrowed resources, there is a "dire need" for increasing quotas, he added.