International Monetary and Financial Committee

Why in news?

• Union Minister for Finance and Corporate Affairs attended the Plenary Meeting of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund (IMF) at the virtual Spring Meetings 2021.

About International Monetary and Financial Committee:

• It is the Ministerial-level committee of the International Monetary Fund (IMF).
• It meets twice a year, once during the Fund-Bank Annual Meetings in October and once during the Spring Meetings in April.

Functions:

• It discusses the management of the international monetary and financial system.
• It advises the IMF on any other matters of common concern affecting the global economy.

Members

• The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and who are usually drawn from the governors of the IMF’s now 190 member countries
• India is one of the current members.
• The IMFC operates by consensus, including on the selection of its chairman.
• While there are no formal rules on term limits, since 2007 IMFC chairmen have been appointed for a term of three years.
• A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

PRACTICE QUESTION:

With reference to ‘International Monetary and Financial Committee’, consider the following statements:

1. It works under the aegis of Organisation for Economic Co-operation and Development

2. World Bank participates as observer in the IMFC’s meetings.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer