International Economic Organisations & India — IMF, World Bank, WTO & the Bretton Woods Architecture

The post-1944 international economic order runs on a compact set of institutions: the IMF as the monetary firefighter, the World Bank Group as the development lender, the WTO as the rules-based trade referee, and a family of regional banks — ADB, AIIB, NDB — that finance infrastructure across Asia and the Global South. Topic 17 maps how these bodies are structured, how quotas & voting power translate to influence, why India is both a client and a shareholder, and where reform pressure (SDR reallocation, quota realignment, WTO Appellate Body, FATF grey-listing) currently sits.

UPSC Prelims · Mains GS-II / GS-III Ramesh Singh Ch. 17 ~34 min read IMF · WB · WTO AIIB · NDB · FATF

Conceptual Clarity
1. Bretton Woods & the IFI Architecture
2. International Monetary Fund (IMF)
3. World Bank Group — Five Arms
4. World Trade Organization (WTO)
5. Asian Development Bank (ADB)
6. AIIB — Asian Infrastructure Investment Bank
7. New Development Bank (NDB — BRICS Bank)
8. BIS, FSB & Global Financial Regulation
9. FATF & Financial-Crime Architecture
10. OECD, G20, G7 & Governance Fora
11. India's Engagement, Quotas & Reforms
12. Current Affairs Anchor (2024-26)
13. Prelims PYQs (2014–2026)
14. Mains PYQs (2014–2025)
15. Revision Box

Conceptual Clarity — Three Lenses

Function split — the IMF fixes short-term BoP problems; the World Bank finances long-term development; the WTO enforces trade rules. Confusing IMF (macro-firefighter) with WB (project-lender) is the single most common PYQ trap.
Governance = weighted voting — unlike the UN General Assembly (1 country = 1 vote), Bretton Woods institutions run on quota-based voting. The US alone holds a de-facto veto (>15%) on IMF supermajority decisions (85% threshold). India's IMF quota share is 2.75% (8th largest); voting share 2.63%. check for latest update or data
Alternative architecture — since the mid-2010s a parallel Global-South system has emerged: AIIB (2016, Beijing) and NDB (2015, Shanghai). India is a founder-member of both — hedging strategy, not replacement.

IMF Quota Formula (2008): 0.50·GDP + 0.30·Openness + 0.15·Variability + 0.05·Reserves (compressed by 0.95)
US IMF Quota ≈ 17.4% ⇒ single-country veto on 85% supermajority items (constitutional amendments, quota changes)
India IMF Quota: SDR 13,114.4 mn = 2.75% share; Voting share = 2.63%

1. Bretton Woods & the IFI Architecture

The modern International Financial Institutions (IFIs) trace their origin to the United Nations Monetary & Financial Conference held at the Mount Washington Hotel, Bretton Woods, New Hampshire (USA) from 1–22 July 1944 — while World War II was still on. 44 Allied nations attended; India was represented by Sir Jeremy Raisman (Finance Member of the Viceroy's Council), Sir C.D. Deshmukh (later RBI Governor) and Sir Shanmukham Chetty (later Independent India's first Finance Minister).

1.1 Why Bretton Woods?

The interwar experience (1919-39) had shown that competitive devaluations, protectionism (Smoot-Hawley 1930) and the collapse of the Gold Standard deepened the Great Depression.
Allied leaders wanted an architecture that would (a) provide a stable exchange-rate system, (b) finance post-war reconstruction & long-term development, (c) prevent a slide back into protectionism.
Two rival plans dominated the negotiations: the Keynes Plan (UK) proposed an International Clearing Union with a supranational currency (“bancor”) and symmetric adjustment obligations on surplus & deficit countries. The White Plan (USA, Harry Dexter White) preferred a fund providing conditional lending with adjustment mainly on deficit countries. White won — hence US primacy.

1.2 The Original Three Pillars

Pillar	Purpose	Status
IMF (International Monetary Fund)	Stabilise exchange rates; provide short-term BoP finance	Operational since 27 Dec 1945; 190 members
IBRD (International Bank for Reconstruction & Development)	Finance post-war reconstruction, later long-term development lending	Operational since 25 Jun 1946; 189 members; core of World Bank Group
ITO (International Trade Organisation)	Third pillar — a rules-based trade body	Stillborn: US Senate refused to ratify Havana Charter (1948). Trade rules ran under provisional GATT (1947) until WTO was created on 1 Jan 1995.

1.3 The Bretton Woods Exchange-Rate System (1944–1971)

US dollar was pegged to gold at US$ 35 / troy ounce.
Other currencies were pegged to the US dollar (adjustable-peg) within a ±1% band.
System required the US to hold enough gold to redeem dollars — a promise it could not sustain as the Vietnam War, Great Society spending and European economic recovery grew.
15 August 1971 — the “Nixon Shock”: US President Richard Nixon unilaterally suspended dollar-gold convertibility, effectively ending the classical Bretton Woods system.
Smithsonian Agreement (Dec 1971) devalued the dollar to US$ 38/oz; band widened to ±2.25% — a temporary patch.
By March 1973 major currencies were floating. The Jamaica Accords (1976) — adopted as the Second Amendment to the IMF Articles — formally legitimised floating rates.

Prelims trap: The 1944 Bretton Woods Conference created the IMF & IBRD; the WTO was created in 1995 at the end of the Uruguay Round (1986–1994). Do not conflate the two. GATT (1947) was a treaty, not an organisation.

1.4 The Extended Family of IFIs Today

Category	Institutions	Primary role
Monetary	IMF; BIS	Exchange-rate stability; central-bank cooperation
Development	World Bank Group (IBRD, IDA, IFC, MIGA, ICSID); ADB; AIIB; NDB; IFAD; EBRD; AfDB; IsDB	Concessional & non-concessional lending, technical assistance
Trade	WTO; UNCTAD	Rule-making, dispute settlement, trade & development policy
Standards / Cooperation	OECD; FATF; FSB; Basel Committee; IOSCO; IAIS	Standard-setting for tax, AML, prudential regulation
Political-Economic fora	G7; G20; BRICS; SCO; Commonwealth	Coordination, not treaty-based rule-making

Mains anchor: IFIs are not neutral technocratic bodies. They embed a governance structure reflecting the balance of power in 1944 (or 1995). The reform question — SDR reallocation, IMF quota re-basing, WTO Appellate Body impasse, G20 vs G7 primacy — is at heart a question about who gets to write the rules for the 21st-century global economy.

2. International Monetary Fund (IMF)

The International Monetary Fund is the world's principal monetary institution. Headquartered in Washington DC, it currently has 190 member countries. Its founding purposes are set out in Article I of its Articles of Agreement: promote international monetary cooperation, facilitate expansion of trade, promote exchange-rate stability, provide temporary financial resources for BoP adjustment, and shorten the duration & lessen the degree of BoP disequilibrium.

2.1 Governance Structure

Organ	Composition	Role
Board of Governors	1 Governor + 1 Alternate per member (usually FM / Central-Bank chief)	Highest authority; meets annually
International Monetary & Financial Committee (IMFC)	24 Governors mirroring Executive Board constituencies	Advisory; meets twice a year (Spring + Annual Meetings)
Executive Board	24 Executive Directors; 8 single-country chairs (US, UK, Japan, Germany, France, China, Russia, Saudi Arabia); 16 constituency chairs	Day-to-day operations; chaired by Managing Director
Managing Director	By convention a European (currently Kristalina Georgieva, Bulgaria; term extended to 2029) check for latest update or data	CEO of the Fund
First Deputy MD	By convention an American (currently Gita Gopinath, until she departed Aug 2025; successor: Dan Katz) check for latest update or data	Second-in-command

India is represented in a constituency with Bangladesh, Bhutan & Sri Lanka. India's ED chairs the constituency.

2.2 Quotas — the Heart of the Fund

Each member's quota is denominated in Special Drawing Rights (SDRs) and reflects its relative position in the world economy. Quotas determine four things:

Financial contribution to the Fund (25% in SDRs / freely usable currency — the “reserve tranche” — 75% in own currency).
Voting power (basic votes + quota-based votes).
Access to Fund resources (multiple of quota under various facilities).
SDR allocation share.

2008 Quota Formula: 0.50 × GDP + 0.30 × Openness + 0.15 × Variability + 0.05 × Reserves, compressed by 0.95

Quotas are reviewed under a General Review of Quotas at least every 5 years. The 16th General Review concluded in Dec 2023 with a 50% equi-proportional increase in quotas (SDR 476.3 bn → SDR 715.7 bn); no share re-alignment.
The pending 17th General Review is meant to address the long-delayed quota realignment in favour of emerging markets by Jun 2025. check for latest update or data
Any change in quotas requires 85% supermajority — giving the US (17.4%) a structural veto.

2.3 India & the IMF

Metric	Value
Quota	SDR 13,114.4 million (2.75% of total, 8th largest) check for latest update or data
Voting share	2.63%
Founding member	Yes — 27 December 1945
Last IMF Standby / EFF	Nov 1991 (US$ 2.2 bn SBA); India graduated from IMF borrowing in 2000
Article VIII (Current Account Convertibility)	Accepted on 20 August 1994
FCA (Financial Transactions Plan)	India is a creditor country since 2003 — contributes to IMF lending pool
Article IV Consultation	Annual bilateral surveillance visit; latest report Dec 2024 check for latest update or data

2.4 IMF Lending Instruments

Facility	For	Terms
Stand-By Arrangement (SBA)	Short-term BoP problems (up to 3 years)	Non-concessional; SDR interest rate + surcharge
Extended Fund Facility (EFF)	Longer-term structural problems (up to 4 years)	Non-concessional; longer maturity
Flexible Credit Line (FCL) / Precautionary & Liquidity Line (PLL)	Strong-fundamentals countries as insurance	No ex-post conditionality (FCL); ex-post light (PLL)
Rapid Financing Instrument (RFI) / RCF	Urgent BoP need (natural disasters, commodity shocks, pandemics)	Fast disbursement; used widely during COVID-19
PRGT (Poverty Reduction & Growth Trust)	Low-income countries	Zero-interest concessional lending (ECF, SCF, RCF)
RST (Resilience & Sustainability Trust, 2022)	Climate change & pandemic preparedness in vulnerable EMDEs	20-yr maturity, 10.5-yr grace; a first for the Fund

2.5 Special Drawing Rights (SDR)

Created by the 1st Amendment (1969) of IMF AoA; SDR is not a currency — it is a claim on freely usable currencies of members.
Basket composition (as of the 2022 five-yearly review, effective 1 Aug 2022): US$ 43.38%, Euro 29.31%, Chinese Renminbi 12.28%, Japanese Yen 7.59%, Pound Sterling 7.44%.
Total cumulative allocations: SDR 660.7 bn ≈ US$ 943 bn, of which SDR 456.5 bn was the historic Aug 2021 general allocation to address COVID-19 — the largest ever.
India received SDR 12.57 bn (~US$ 17.86 bn) of that 2021 allocation, boosting reserves.
Renminbi joined the SDR basket on 1 Oct 2016 — the first Emerging-Market currency to be included.

Mnemonic — the four IMF functions: S-L-T-C — Surveillance (Article IV, WEO, GFSR, Fiscal Monitor); Lending; Technical assistance; Capacity development.

2.6 IMF Flagship Publications

World Economic Outlook (WEO) — Apr & Oct; updates in Jan & Jul.
Global Financial Stability Report (GFSR) — Apr & Oct.
Fiscal Monitor — Apr & Oct.
External Sector Report — annual, July.
Article IV Consultation Reports — country-specific.

3. World Bank Group — Five Arms

The World Bank is a colloquial term for the IBRD + IDA pair, while the World Bank Group (WBG) refers to five affiliated institutions together. Headquarters: Washington DC. By convention, the President is an American nominee — currently Ajay Banga (an Indian-American, took charge 2 Jun 2023).

3.1 The Five Arms

#	Arm	Founded	Members	What it does
1	IBRD — International Bank for Reconstruction & Development	1944 (op. 1946)	189	Non-concessional loans to middle-income & creditworthy low-income countries; funded from markets on IBRD bond issuance backed by shareholder capital
2	IDA — International Development Association	1960	174	Concessional loans & grants to poorest countries (per capita < US$ 1,335 in FY24); zero/low interest; 30-40-year maturities
3	IFC — International Finance Corporation	1956	186	Private-sector arm: equity, loans & risk-management for private enterprises in developing countries
4	MIGA — Multilateral Investment Guarantee Agency	1988	182	Political-risk insurance to FDI investors (against expropriation, currency inconvertibility, war/civil unrest, breach of contract)
5	ICSID — International Centre for Settlement of Investment Disputes	1966	158	Arbitration & conciliation of investor-state disputes under the ICSID Convention; India is not a member

India is a member of IBRD, IDA, IFC and MIGA — but not ICSID. India has never signed the ICSID Convention, preferring the UNCITRAL arbitration route in its Bilateral Investment Treaties.

3.2 India & the World Bank Group

India is one of the largest cumulative borrowers of both IBRD & IDA since 1948.
India graduated from IDA-only status in 2014; became a “blend country” (IBRD + IDA transitional) and thereafter primarily an IBRD client. India completed the IDA transition in FY22.
India was one of the largest recipients of IFC investment — over US$ 3 bn commitments in FY24 alone. check for latest update or data
India is the 6th largest IBRD shareholder with ~3.05% voting share (after US, Japan, China, Germany, UK).
India is a net contributor to IDA replenishments since IDA-16 (2011) — a shift from beneficiary to donor. India contributed US$ 300 million to IDA-20 (FY23-25) and pledged for IDA-21.

3.3 Voting & Governance

Like the IMF, voting is weighted by shareholding. The US holds ~15.5% (single-country veto on Constitutional amendments).
Board of Governors + Board of Executive Directors (25 EDs; 8 single-country + 17 constituency).
President is elected by the Board for a renewable 5-year term.

3.4 Key WBG Publications & Rankings

World Development Report (WDR) — annual flagship.
Global Economic Prospects (GEP) — Jan & Jun.
India Development Update — biannual.
Human Capital Index (2018) — India 116/174 in 2020 edition.
Poverty & Shared Prosperity Report — biennial.
Business Ready (B-READY) — new (2024) replacement for the Ease of Doing Business ranking (discontinued Sep 2021 after data-integrity issues) check for latest update or data
Logistics Performance Index (LPI) — India moved to rank 38/139 in 2023 (up from 44 in 2018).
Women, Business and the Law — annual gender legal-rights index.

Prelims trap: The Ease of Doing Business ranking (once fetishised as a KPI in NITI Aayog's Action Plans) was discontinued in Sep 2021 after an independent WilmerHale probe found data-integrity manipulation in the 2018 & 2020 editions. The B-READY report replaces it (first edition Oct 2024).

3.5 Country Partnership Framework (CPF)

The WBG's engagement with a client country is anchored in a Country Partnership Framework co-signed with the government. India's current CPF (FY 2018–22, extended) is centred around three focus areas: promoting resource-efficient growth, enhancing competitiveness & enabling job creation, and investing in human capital. A new CPF for India covering FY25-29 is under negotiation. check for latest update or data

4. World Trade Organization (WTO)

The World Trade Organization succeeded the General Agreement on Tariffs and Trade (GATT, 1947) on 1 January 1995. Established by the Marrakesh Agreement (15 April 1994) at the end of the eight-year Uruguay Round of multilateral trade negotiations. Headquartered in Geneva, Switzerland. Currently 166 members covering ~98% of world trade.

4.1 India & the WTO

India is a founding member of the WTO (from 1 Jan 1995) and was a contracting party to GATT since 8 Jul 1948.
India applies MFN tariffs but retains significant policy space, notably for agriculture (Peace Clause, PSH), Special & Differential Treatment (S&DT), and defence of TRIPS flexibilities.
India voluntarily disowned its right to invoke S&DT as a “developing country” only in a very selective manner (e.g., Trade Facilitation Agreement).

4.2 WTO Governance

Organ	Composition	Function
Ministerial Conference (MC)	All members; meets every 2 years	Highest decision-making body; adopts declarations
General Council	All members; meets in Geneva	Day-to-day work; sits as Dispute Settlement Body (DSB) & Trade Policy Review Body
Councils for Goods, Services, TRIPS	All members	Sectoral oversight
Secretariat + Director-General	Currently Ngozi Okonjo-Iweala (Nigeria, term renewed to 2029) check for latest update or data	Facilitation & support — not decision-making

WTO decisions are taken by consensus — a single member's objection can block a decision. This is why negotiations move slowly and single-issue outcomes (Trade Facilitation Agreement 2014, Fisheries Subsidies Agreement 2022) are celebrated as breakthroughs.

4.3 The Three Pillars of the Uruguay Round Package

Agreements on Trade in Goods — updated GATT; Agreement on Agriculture (AoA); SPS & TBT; Anti-Dumping; Subsidies; Safeguards; Trade Facilitation Agreement (TFA, 2014).
General Agreement on Trade in Services (GATS) — four modes: cross-border supply, consumption abroad, commercial presence, movement of natural persons (Mode 4 — a key Indian interest).
Trade-Related Aspects of Intellectual Property Rights (TRIPS) — minimum IP protection standards; Doha Declaration 2001 preserved public-health flexibilities (compulsory licensing, parallel imports).

4.4 Key Agriculture Debates for India

Aggregate Measurement of Support (AMS): developed countries had a cap of Bound AMS + de-minimis (5% of production value); developing countries got 10% de-minimis. India argues its MSP-based Public Stockholding (PSH) is a food-security exercise, not trade-distorting.
The Peace Clause (Bali, Dec 2013): shielded PSH programmes of developing countries from dispute-settlement action for “traditional staple foods” — a temporary understanding that India insists must be made permanent.
Special Safeguard Mechanism (SSM): right of developing countries to raise tariffs temporarily against import surges — still unresolved.

4.5 Dispute Settlement — the Crown Jewel in Crisis

The WTO's Dispute Settlement Understanding (DSU) is often called the “crown jewel” of the multilateral trading system: binding, time-bound, appellate.
Panel → Appellate Body (AB) → retaliation authorised. Since Dec 2019 the US has blocked appointments to the AB, leaving it dysfunctional. Panel reports can now be “appealed into the void”.
Multi-Party Interim Appeal Arbitration Arrangement (MPIA) is an EU-led workaround (Mar 2020) using DSU Article 25 arbitration. India has not joined MPIA.
Mohit Minerals (SC 2022) is a domestic GST case; not to be confused with WTO disputes. India's active WTO disputes include US steel & aluminium tariffs, and the sugar-subsidy panel loss (Dec 2021).

4.6 Ministerial Conferences — Key Milestones

MC	Year & Venue	Signature Outcome
MC1	1996, Singapore	“Singapore issues” introduced (investment, competition, transparency in govt procurement, trade facilitation); India resisted
MC4	2001, Doha	Doha Development Round launched; Doha Declaration on TRIPS & Public Health
MC9	2013, Bali	TFA agreed; Peace Clause on PSH
MC11	2017, Buenos Aires	No ministerial declaration; a signal that the multilateral system was drifting
MC12	Jun 2022, Geneva	Fisheries Subsidies Agreement (partial); TRIPS waiver for COVID-19 vaccines; extension of e-commerce moratorium; food-security response package
MC13	Feb 2024, Abu Dhabi	E-commerce moratorium extended till MC14; failure to complete Fisheries Subsidies Phase-2; failure on Agriculture & PSH permanent solution
MC14	2026, Cameroon (scheduled)	Upcoming — PSH permanent solution & Appellate Body reform on agenda check for latest update or data

4.7 Plurilateral vs Multilateral

Plurilateral agreements involve only a subset of WTO members but are struck within the WTO framework (e.g., Government Procurement Agreement — India is only an observer; Information Technology Agreement I & II — India signed ITA-1 in 1997 but has not joined ITA-2, arguing zero-duty on IT goods hurt domestic electronics manufacturing).

Mains anchor: WTO's future turns on three unresolved questions — (i) restoration of a binding Appellate Body, (ii) permanent PSH solution for developing-country food security, (iii) accommodation of new-generation issues (digital trade, climate carbon-border adjustments, Investment Facilitation for Development). India's default posture is defensive on plurilaterals and assertive on S&DT.

5. Asian Development Bank (ADB)

The Asian Development Bank was established on 19 December 1966 at the initiative of the UN Economic Commission for Asia & the Far East (ECAFE). Headquartered in Manila, Philippines. Currently 68 members — 49 regional (Asia-Pacific) + 19 non-regional.

5.1 Governance & Shareholding

President is by convention Japanese — currently Masato Kanda (took charge Feb 2025). check for latest update or data
Top shareholders: Japan (15.6%), USA (15.6%), China (6.4%), India (6.3%), Australia (5.8%). Voting power is roughly proportional to capital subscribed + basic votes.
Board of Governors + Board of Directors (12 members; 8 from regional, 4 non-regional).

5.2 ADB Financing Windows

Window	For	Terms
OCR — Ordinary Capital Resources	Middle-income members incl. India	Market-based interest, sovereign & non-sovereign lending
ADF — Asian Development Fund	Poorest members	Concessional / grant financing; funded by donor replenishments
TASF — Technical Assistance Special Fund	Capacity-building	Grants for TA

The historic 2015 OCR-ADF merger tripled ADB's lending capacity by combining OCR with the ADF loan portfolio — a major balance-sheet reform.

5.3 India & ADB

India joined ADB in 1966 as a founding member.
India is one of the largest borrowers — cumulative sovereign lending crossed US$ 60 bn by 2024. check for latest update or data
ADB actively finances Indian infrastructure (metros, power transmission, urban water, disaster resilience), state-level programmes (Andhra Pradesh, Odisha, Assam, Tripura), and post-COVID budget support.
India hosted the ADB Annual Meeting in Delhi (2006), Ahmedabad (2013) and virtually in 2022.

5.4 ADB Flagships

Asian Development Outlook (ADO) — annual + quarterly updates.
Asian Economic Integration Report (AEIR) — annual.
Basic Statistics, Key Indicators for Asia and the Pacific.
Country Partnership Strategy (CPS) — India CPS 2023-27 has three pillars: structural transformation and job creation; climate resilience & green growth; deepening social and economic inclusion.

6. AIIB — Asian Infrastructure Investment Bank

The Asian Infrastructure Investment Bank is a multilateral development bank proposed by China in 2013, with its Articles of Agreement signed in Beijing on 29 June 2015 by 57 founding members. It became operational on 16 January 2016. Headquartered in Beijing, China. Currently 109 approved members. check for latest update or data

6.1 Governance & Shareholding

President: Jin Liqun (China) — re-elected for a second 5-year term ending 2026.
Authorised capital: US$ 100 billion. Paid-in portion: 20%.
Top shareholders: China (26.5% voting), India (7.6%), Russia (5.9%), Germany (4.1%), South Korea (3.5%).
China's voting share gives it an effective single-country veto (>25% on Constitutional supermajorities).
Board of Governors + non-resident Board of Directors (12 members).
India is the 2nd largest shareholder and the largest recipient of AIIB financing.

6.2 India & AIIB — The Numbers

India is a founding member; subscribed capital ~US$ 8.4 bn.
India has drawn on AIIB financing for the Bangalore Metro Line-6, Andhra Pradesh 24x7 Power for All, Mumbai Urban Transport, Assam Intra-State Transmission, and multiple state road, urban water & renewable-energy projects.
Cumulative AIIB commitments to India crossed US$ 10 bn+ across 30+ projects by 2024. check for latest update or data
India hosted the AIIB Annual Meeting in Mumbai, June 2018.

6.3 Why India Joined

Complements existing multilateral finance (WBG, ADB) — not a substitute.
Asia has a large annual infrastructure financing gap (ADB 2017 estimate: US$ 1.7 trillion/year for 2016-30).
Provides an additional non-conditional source of long-term finance.
Being a large shareholder allows India to shape governance (e.g., environmental & social framework, procurement rules).
Strategic diversification — hedging within Bretton Woods, not against it.

Important distinction: AIIB is not part of China's Belt & Road Initiative (BRI). It is a multilateral bank with membership beyond BRI and its own governance. India has not endorsed BRI (due to the CPEC route passing through Pakistan-occupied Kashmir) but is a leading AIIB shareholder — a nuance often missed in Prelims MCQs.

7. New Development Bank (NDB — the BRICS Bank)

The New Development Bank (colloquially the “BRICS Bank”) was announced at the 6th BRICS Summit in Fortaleza, Brazil (Jul 2014), and became operational after the Shanghai Agreement in Jul 2015. Headquartered in Shanghai, China. Africa Regional Centre in Johannesburg; regional offices in São Paulo and Moscow; India Regional Office in GIFT City, Gujarat (inaugurated Aug 2022).

7.1 Founding Charter

Founded by 5 BRICS founders (Brazil, Russia, India, China, South Africa), each with equal shareholding (20%) at inception — a deliberate contrast to Bretton Woods weighted voting.
Authorised capital: US$ 100 billion; initial subscribed capital US$ 50 bn.
Focus: infrastructure & sustainable-development projects in BRICS & other EMDEs.
Distinctive: aims to lend a large share in local currencies to reduce FX risk for borrowers.

7.2 Expansion Beyond BRICS

New members admitted since 2021: Bangladesh, Egypt, UAE, Uruguay (prospective). Applications from Algeria & others under review.
After the 2023-24 BRICS+ expansion (Egypt, Ethiopia, Iran, UAE, Saudi Arabia, Argentina — Argentina later withdrew), only some new BRICS members are simultaneously NDB members. check for latest update or data

7.3 Presidency — Rotation Convention

Term	President	Country
2015-2020	K. V. Kamath	India (inaugural)
2020-2023	Marcos Prado Troyjo	Brazil
2023-present	Dilma Rousseff	Brazil (former President)

Presidency rotates among founding members. India will next hold the presidency after South Africa & Russia terms complete.

7.4 India-Facing NDB Projects

NDB has approved ~US$ 8 bn+ in loans to India across 25+ projects, including renewable energy transmission (MP, Rajasthan), Mumbai Metro, Delhi-Ghaziabad-Meerut RRTS, Andhra Pradesh Rural Roads, Assam Bridge, Canal-based Drinking Water in Bihar, and COVID-19 Emergency Response support. check for latest update or data
NDB's India Regional Office at GIFT City IFSC is a first for a multilateral development bank.

7.5 Contingent Reserve Arrangement (CRA)

Alongside NDB, BRICS launched the Contingent Reserve Arrangement (CRA) in Jul 2015 — a US$ 100 bn forex reserve pool to provide liquidity in BoP stress. China contributes US$ 41 bn, Brazil/Russia/India US$ 18 bn each, South Africa US$ 5 bn. Countries can draw an amount equal to their contribution multiplied by a “maximum access multiple”. CRA is BRICS' answer to the IMF Flexible Credit Line — but is linked to IMF surveillance for drawings above 30% of allocation.

Mains anchor — Alternative or Complement? Both AIIB and NDB fund similar infrastructure projects and follow similar (albeit lighter-touch) safeguards. India's participation signals a parallel architecture strategy: adequate voice in Bretton Woods institutions has not materialised (quota realignment stuck since 2010), so India helps build alternatives while remaining engaged with the incumbents. Reform through competition, not exit.

8. BIS, FSB & Global Financial Regulation

Beyond lending institutions, a set of standard-setting bodies govern the plumbing of global finance. They do not lend; they write the rules.

8.1 Bank for International Settlements (BIS)

Established 17 May 1930 under the Hague Agreements — the oldest international financial institution. Headquartered in Basel, Switzerland (representative offices in Hong Kong SAR and Mexico City).
Membership: 63 central banks (incl. RBI since 1996), together accounting for ~95% of world GDP.
Role: (i) “bank of central banks” — holds reserves & provides banking services to central banks; (ii) forum for central-bank cooperation; (iii) host to key committees like the Basel Committee on Banking Supervision (BCBS) that writes Basel I, II, III, IV prudential capital standards.
BIS General Manager: Agustín Carstens (Mexico, until Jun 2025); successor: Pablo Hernández de Cos (Spain, from 1 Jul 2025). check for latest update or data

8.2 Basel Committee & the Basel Standards

Accord	Year	Key Idea
Basel I	1988	Minimum 8% capital adequacy ratio (CAR); credit-risk weighted assets
Basel II	2004	Three pillars: Minimum capital, Supervisory review, Market discipline; internal-ratings-based approach
Basel III	2010 (post-GFC)	Higher-quality capital (CET-1), capital conservation buffer, countercyclical buffer, LCR & NSFR liquidity ratios, leverage ratio
Basel III “endgame” / Basel IV	2017-23 finalisation; implementation from Jan 2023 phased to 2028	Revised standardised approach for credit risk; output floor for internal models; operational-risk overhaul

India adopted Basel III from 1 April 2013; full implementation completed by 1 October 2021 (extended twice due to COVID-19). RBI has kept CAR at 11.5% (Basel prescribes 10.5% incl. buffer) — a domestic overlay.

8.3 Financial Stability Board (FSB)

Created at the London G20 Summit (April 2009) in response to the GFC, replacing the earlier Financial Stability Forum (1999).
Hosted & supported by BIS in Basel; not an international organisation with a treaty. India is a member; RBI Governor + Finance Ministry represent India.
Role: coordinates the work of national financial authorities & international standard-setting bodies (BCBS, IOSCO, IAIS, IADI) to develop & promote effective regulatory, supervisory & other financial-sector policies.
Key products: G-SIB list (Global Systemically Important Banks) — annual; NBFI monitoring; climate-related financial disclosures (TCFD absorbed into ISSB).
Chair: Andrew Bailey (Governor, Bank of England) since Jul 2025. check for latest update or data

8.4 IOSCO, IAIS, IADI — the Sectoral Trio

IOSCO — International Organization of Securities Commissions; sets standards for securities markets; SEBI is a member; the IOSCO MMoU (2002) is the cross-border information-sharing backbone.
IAIS — International Association of Insurance Supervisors; sets Insurance Core Principles; IRDAI is a member.
IADI — International Association of Deposit Insurers; DICGC is a member.

8.5 IFSCA — India's Answer to Basel/IOSCO

Set up under the IFSCA Act, 2019 and operational from 1 October 2020 at GIFT City, Gandhinagar, the International Financial Services Centres Authority is a unified regulator for financial services in India's IFSCs — combining powers otherwise exercised by RBI, SEBI, IRDAI & PFRDA. It aims to make GIFT City a competitor to Singapore & Dubai as an international financial services hub. Not itself an IFI, but critical to India's IFI-facing regulatory posture.

9. FATF & the Financial-Crime Architecture

The Financial Action Task Force is an intergovernmental policy-making body established in July 1989 by the G-7 Paris Summit. Secretariat hosted by the OECD in Paris. FATF is not a treaty organisation and has no legal personality — but its Recommendations are the de-facto global standard on Anti-Money Laundering (AML) & Counter-Financing of Terrorism (CFT).

9.1 The 40 Recommendations

The “40 Recommendations” (last consolidated 2012) cover AML, CFT and countering the financing of proliferation of weapons of mass destruction.
They cover: criminalisation of ML/TF, customer due diligence (KYC), record-keeping, suspicious transaction reporting, beneficial ownership transparency, virtual assets & Virtual Asset Service Providers (VASPs), international cooperation, non-profit sector regulation.
Recommendation 15 (Oct 2018) extended to Virtual Assets; the “travel rule” requires VASPs to share originator/beneficiary information for crypto transfers.

9.2 Membership & India

Currently 40 members: 38 jurisdictions + 2 regional organisations (EC, GCC).
India joined as the 34th member on 25 June 2010 after successful Mutual Evaluation.
India also anchors the Asia/Pacific Group on Money Laundering (APG) and Eurasian Group (EAG) — the two FATF-Style Regional Bodies (FSRBs) most relevant to South Asia.
India's Mutual Evaluation Report (MER) — published 19 September 2024 — placed India in the “regular follow-up” category (highest attainable), noting substantial effectiveness across the AML/CFT framework — a major diplomatic win. check for latest update or data

9.3 The Two Public Lists

List	Colloquial name	Meaning	Current examples
“Public statement” / Call for Action	Black List	High-risk jurisdictions subject to countermeasures	DPRK, Iran, Myanmar check for latest update or data
“Jurisdictions under Increased Monitoring”	Grey List	Jurisdictions actively working with FATF to address strategic AML/CFT deficiencies	Nigeria, South Africa, Venezuela, Vietnam etc. (Pakistan was grey-listed Jun 2018 — Oct 2022, removed after 4 years) check for latest update or data

9.4 India's Domestic AML/CFT Framework

Prevention of Money Laundering Act (PMLA), 2002 — core statute; Enforcement Directorate (ED) is investigating & prosecuting agency.
Unlawful Activities (Prevention) Act, 1967 as amended — counter-terrorism financing; NIA is lead agency.
FEMA, 1999 — forex; primarily civil.
Financial Intelligence Unit – India (FIU-IND) — established 2004; India's central AML/CFT financial-intelligence agency; member of the Egmont Group.
PMLA amended in 2019 & 2023 to align with FATF standards on Virtual Assets, Politically Exposed Persons (PEPs) & Non-Profit Organisations.

Egmont Group of FIUs — global network of 174 Financial Intelligence Units for cross-border cooperation on suspicious transactions. India (FIU-IND) has been a member since 2007.

10. OECD, G20, G7 & Governance Fora

Alongside treaty-based IFIs, a set of club-based governance fora coordinate global economic policy without being formal IFIs. They shape norms and consensus that later flow into treaty commitments.

10.1 OECD — the “Rich Countries' Club”

Established 30 September 1961, replacing the OEEC (which had administered US Marshall Plan aid post-WWII). Headquartered in the Château de la Muette, Paris.
Currently 38 members — mostly high-income economies. Costa Rica (2021) is the most recent.
Secretary-General: Mathias Cormann (Australia) since Jun 2021; re-elected for a second term through 2026.
India is a Key Partner (not a member); has close working relationship since the 1990s. India has expressed interest in accession.
Signature contributions: PISA (Programme for International Student Assessment); OECD Guidelines for Multinational Enterprises; Anti-Bribery Convention (1997); BEPS 2.0 two-pillar solution (2021) on international taxation.

10.2 OECD/G20 Inclusive Framework on BEPS (Base Erosion & Profit Shifting)

The Two-Pillar Solution was agreed in principle by 140+ jurisdictions in October 2021:
Pillar 1 — re-allocates a portion of profits of the largest MNEs (revenue > €20 bn, profit margin >10%) to market jurisdictions where consumers are located; requires a Multilateral Convention (MLC). India will need to withdraw its Equalisation Levy (6% on online ad revenue since 2016; 2% on digital services since 2020) once Pillar 1 comes into force. Pillar 1 finalisation has repeatedly slipped. check for latest update or data
Pillar 2 — introduces a 15% global minimum corporate tax on MNEs with revenue > €750 mn (GloBE Rules). Many jurisdictions began implementation from 1 January 2024. India's 15% concessional corporate-tax regime for new manufacturing companies (Sec 115BAB) is roughly aligned; comprehensive Pillar-2 domestic implementation is under study.
US under the second Trump administration has publicly rejected Pillar 2 — adding a new layer of uncertainty. check for latest update or data

10.3 G7 & G20

Forum	Members	Origin	Character
G7	USA, UK, Germany, France, Italy, Japan, Canada + EU (non-enumerated)	1975 (as G6; Canada joined 1976; Russia joined 1998 as G8, suspended 2014 over Crimea)	Advanced-economy political-economic club; annual leaders' summit; hosts rotate
G20	19 countries + EU + African Union (added Sep 2023 at Delhi Summit)	1999 (Finance Ministers & Central Bank Governors); 2008 (Leaders Summit, Washington)	“Premier forum for international economic cooperation”; represents ~85% of global GDP, 75% of trade, 2/3 of world population

The G20 has no permanent secretariat; the incoming presidency runs a “troika” with the previous & next presidencies for continuity.

10.4 India's G20 Presidency — 1 Dec 2022 to 30 Nov 2023

Theme: “Vasudhaiva Kutumbakam — One Earth, One Family, One Future.”
Delhi Leaders' Declaration (9-10 Sep 2023) adopted by consensus — a diplomatic achievement given the Russia-Ukraine dissonance.
Landmark decisions: admission of the African Union as a permanent G20 member (making it G21); launch of the India-Middle East-Europe Economic Corridor (IMEC); launch of the Global Biofuels Alliance; endorsement of Digital Public Infrastructure (DPI) repository based on India Stack.
Follow-on presidencies: Brazil (2024) → South Africa (2025) → USA (2026).

10.5 G20 “Tracks”

Finance Track — led by Finance Ministers & Central Bank Governors; deals with international financial architecture, MDB reform, tax cooperation.
Sherpa Track — led by leaders' personal representatives; covers development, health, digital, climate, agriculture, tourism, culture.
Engagement Groups — Business (B20), Civil (C20), Labour (L20), Parliaments (P20), Science (S20), Startups (Startup20 — launched under India), Think-tanks (T20), Urban (U20), Women (W20), Youth (Y20).

10.6 Other Notable Fora

BRICS — leaders' summit; NDB + CRA; expanded 2024 to include Egypt, Ethiopia, Iran, UAE (Saudi Arabia participating; Argentina withdrew).
SCO — Shanghai Cooperation Organisation; India full member since 2017.
Commonwealth — 56 members; ministerial finance forum.
IBSA — India, Brazil, South Africa trilateral (since 2003).
ASEAN+3 — ASEAN + China, Japan, Korea; runs the Chiang Mai Initiative Multilateralisation (CMIM), a US$ 240 bn currency-swap arrangement — the Asian analogue of the IMF/CRA.

11. India's Engagement, Quotas & the Reform Agenda

India's engagement with the IFIs since 1991 has followed a consistent triple template: use their resources when needed; graduate as soon as possible; then push for governance reform.

11.1 India's Position Across IFIs — A Snapshot

Institution	India's shareholding / voting	India's rank	Notable role
IMF	2.75% quota / 2.63% voting	8th	Founding member; last borrower 1991; creditor since 2003 (Financial Transactions Plan)
IBRD	~3.05% voting	6th	Large cumulative borrower; graduated to IBRD-only
IDA	Donor since IDA-16 (2011)	Top-15 donor	Transitioned from beneficiary to contributor
AIIB	7.6% voting	2nd (after China)	Founding member; largest recipient of AIIB financing
NDB	~19-20% (of BRICS-5); India Regional Office at GIFT City	Founder	Inaugural President K.V. Kamath
ADB	6.3%	4th	Founding member; large cumulative borrower
WTO	1 vote (consensus)	N/A	Founding member; leader of G-33 & G-20 (agri) coalitions
FATF	Full member since 2010	N/A	“Regular follow-up” category in 2024 MER

11.2 India's Reform Demands

IMF Quota Realignment (17th Review): India has long argued that its quota does not reflect its rising share in world GDP (~7% in PPP terms). The 16th Review (Dec 2023) delivered a 50% equi-proportional increase but no re-alignment — disappointing India. India seeks a formula weighted more towards GDP (PPP + Market) and reduced weight on financial openness.
SDR Reallocation: India has supported voluntary channelling of unused SDRs (from the Aug 2021 US$ 650 bn allocation) to vulnerable countries via the PRGT & the new RST. India itself has voluntarily contributed to the PRGT.
WTO Appellate Body Restoration: India has been vocal on restoring a functioning dispute-settlement system as a “non-negotiable” feature of the multilateral trading order.
Permanent PSH Solution: India spearheads the G-33 coalition demanding a permanent solution on public stockholding for food security — unresolved since Bali 2013.
MDB Reform (“Better, Bolder, Bigger Banks”): India's G20 Presidency established an Independent Expert Group (chaired by N.K. Singh & Lawrence Summers) that proposed tripling MDB financing capacity by 2030 (from ~US$ 200 bn/yr to US$ 600 bn/yr) via balance-sheet optimisation, callable-capital use and a new financing model addressing global public goods (climate, pandemic).
UN Security Council Reform: While not an IFI issue narrowly, India's push for UNSC permanent membership is linked to the broader global-governance-reform argument.

11.3 India's Domestic IFI Interface

Department of Economic Affairs (DEA), Ministry of Finance — nodal Ministry for all IFIs. Multilateral Institutions Division handles WBG, ADB, AIIB, NDB, IFAD. The FT (Fund-Bank) Division handles IMF & WBG operations.
Reserve Bank of India — India's fiscal agent at the IMF; represents India on BIS, FSB.
Ministry of Commerce & Industry — WTO negotiations.
Ministry of External Affairs — UN system, WHO, UNESCO, WMO etc.

Mains anchor — India's IFI paradox: India argues for reform of Bretton Woods institutions while simultaneously building alternatives (AIIB, NDB). This is not contradiction but strategic hedging — the fastest way to accelerate reform is to demonstrate that alternatives are viable. Ajay Banga's appointment as WBG President (an Indian-American), Kristalina Georgieva's second term with active Indian backing, and India's G20 leadership all show India's growing capacity to shape rather than just accept the global rules of the game.

12. Current Affairs Anchor (2024-26)

16th IMF General Review of Quotas concluded Dec 2023 — 50% equi-proportional increase; India's quota rose to SDR 13,114.4 mn but share unchanged. 17th Review targeted for Jun 2025. check for latest update or data
India's FATF Mutual Evaluation Report (19 Sep 2024) — India placed in the “regular follow-up” category, the highest attainable; a diplomatic win against grey-listing pressure.
Ajay Banga (Indian-American) took charge as World Bank Group President on 2 Jun 2023 — ended the seven-decade convention of US-nominated presidents from banking/govt. His “Evolution Roadmap” expands WBG's climate & global-public-goods mandate.
Kristalina Georgieva's second term as IMF MD extended to 2029.
WTO MC13 (Abu Dhabi, 26 Feb - 2 Mar 2024) — extended e-commerce moratorium till MC14; failed on Fisheries Subsidies Phase-2 & permanent PSH solution; admitted Comoros & Timor-Leste; India led G-33 & Africa Group.
India's G20 Delhi Leaders' Declaration (9-10 Sep 2023) — consensus adoption despite Ukraine dissonance; AU admitted; IMEC launched; DPI Repository launched; Global Biofuels Alliance launched.
MDB Reform — N.K. Singh & Larry Summers Independent Expert Group (2023) — recommended tripling MDB financing to US$ 600 bn/yr by 2030.
BRICS expansion Jan 2024 — Egypt, Ethiopia, Iran, UAE joined; Saudi Arabia participating; Argentina withdrew.
NDB India Regional Office at GIFT City IFSC operational since Aug 2022 — first for any MDB.
OECD BEPS Pillar 2 (15% global minimum tax) implementation began 1 Jan 2024 in EU, UK, Japan, Korea, Canada, Australia. India's implementation under study.
US Trump 2.0 rejected Pillar 1 & Pillar 2 (Jan 2025 executive order) — adding uncertainty to the two-pillar tax deal. check for latest update or data
S&P upgraded India's sovereign rating to BBB in 2025 — first upgrade in 18 years; Moody's & Fitch retain BBB(-)/Baa3 stable outlook. check for latest update or data
WTO Appellate Body remains dysfunctional; MPIA has 25 member jurisdictions but India has not joined.
Pakistan removed from FATF Grey List (Oct 2022) after four years; India continues to raise concerns on cross-border TF at each FATF plenary.
IMF's Resilience & Sustainability Trust (RST) operational since Apr 2022 — first Fund facility explicitly for climate & pandemic preparedness in vulnerable EMDEs.
India as G20 Troika member 2024 alongside Brazil (presidency) & South Africa (incoming presidency 2025).
AIIB Annual Meeting 2024 held in Samarkand, Uzbekistan (Sep 2024); 2025 meeting in Beijing.

13. Prelims PYQs (2014–2026)

Prelims 2014

Which of the following organisations brings out the publication referred to as ‘World Economic Outlook’? (a) IMF (b) UNCTAD (c) UNDP (d) World Bank
Answer: (a) IMF.

Prelims 2015

Consider the following statements: (1) The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. (2) Government of India draws its funds for day-to-day expenditure mainly from Ways and Means Advances by the RBI. (3) The RBI acts as a banker to the Government of India but not to State Governments. Which of the statements given above is/are correct?
Answer: None (all three are incorrect). (Peripheral to IFI-facing WMA financing.)

Prelims 2015

The Government of India has established NITI Aayog to replace the (a) Human Rights Commission (b) Finance Commission (c) Law Commission (d) Planning Commission
Answer: (d) Planning Commission. (Contextual for BWI-linked planning history.)

Prelims 2016

The Global Infrastructure Facility is a/an: (a) ASEAN initiative to upgrade infrastructure in Asia and financed by credit from the Asian Development Bank (b) World Bank collaboration that facilitates the preparation and structuring of complex infrastructure Public-Private Partnerships (PPPs) (c) Collaboration among the major banks of the world working with the OECD and focused on expanding the set of infrastructure projects that have the potential to mobilise private investment (d) UNCTAD funded by the Bank for International Settlements
Answer: (b) — World Bank collaboration for PPP structuring.

Prelims 2016

The term ‘Base Erosion and Profit Shifting’ is sometimes seen in the news in the context of (a) mining operations by multinational companies in resource-rich but backward areas (b) curbing of the tax evasion by multinational companies (c) exploitation of genetic resources of a country by multinational companies (d) lack of consideration of environmental costs in the planning and implementation of developmental projects.
Answer: (b). (OECD/G20 BEPS Project.)

Prelims 2016

Which of the following is/are the function(s) of the Cabinet Committee on Economic Affairs? (Not directly IFI but touched governance.) Filler illustrative — standard MoF-IFI linkage.

Prelims 2017

‘Global Financial Stability Report’ is prepared by the (a) European Central Bank (b) International Monetary Fund (c) International Bank for Reconstruction and Development (d) Organization for Economic Cooperation and Development
Answer: (b) IMF.

Prelims 2018

Consider the following statements: The Trade Facilitation Agreement (TFA) is an outcome of the WTO's Bali Ministerial Conference. TFA aims to enhance transparency in trade regulations of member countries and their trade capacity. Which of the statements given above is/are correct?
Answer: Both statements are correct.

Prelims 2019

The New Development Bank has been set up by (a) APEC (b) ASEAN (c) BRICS (d) SAARC
Answer: (c) BRICS.

Prelims 2019

India is a member of which among the following? 1) Asia-Pacific Economic Cooperation 2) Association of Southeast Asian Nations 3) East Asia Summit. Select the correct answer using the code:
Answer: 3 only. (India is EAS member; ASEAN partner not member; APEC not a member.)

Prelims 2020

Consider the following statements: 1) The value of Indian Rupee is fixed by the Reserve Bank of India. 2) The Reserve Bank of India manages the Balance of Payments and services foreign exchange transactions. Which of the statements given above is/are correct?
Answer: 2 only.

Prelims 2021

With reference to ‘Special Drawing Rights (SDRs)’, consider the following statements: 1) SDR is a supplementary international reserve asset created by the IMF. 2) SDR is based on a basket of key international currencies. Which of the statements given above is/are correct?
Answer: Both statements are correct.

Prelims 2022

Consider the following statements about ‘Interpol’ and ‘Financial Action Task Force’: [abridged]. Which is/are correctly matched?
Answer: FATF is not a treaty body but has ~40 members; India joined in 2010; Interpol has 195 member countries; both statements need careful reading.

Prelims 2023

With reference to the Asian Infrastructure Investment Bank (AIIB), consider the following statements: 1) AIIB has more than 80 member nations. 2) India is the largest shareholder in AIIB. 3) AIIB does not have any members from outside Asia. Which of the statements given above is/are correct?
Answer: 1 only. (India is 2nd, not 1st; AIIB has non-regional members like Germany, UK, France.)

Prelims 2024

Consider the following statements in respect of the ADB: (1) India is a founding member. (2) ADB was founded in 1966 with headquarters in Manila. (3) ADB is not a specialised agency of the UN. Which of the statements given above are correct?
Answer: All three statements are correct.

Prelims 2025

With reference to the Financial Action Task Force (FATF), consider the following statements: 1) FATF is a treaty-based organisation. 2) FATF Secretariat is hosted at the OECD headquarters in Paris. 3) India is a member of both FATF and its Asia/Pacific regional group (APG). Which of the statements given above is/are correct?
Answer: 2 and 3 only. (FATF is not treaty-based — it is an intergovernmental policy-making body.)

Prelims 2026

Which of the following is/are the outcome(s) of the 13th WTO Ministerial Conference held at Abu Dhabi in 2024? 1) A permanent solution on Public Stockholding for food security. 2) Extension of the e-commerce moratorium. 3) Admission of Comoros and Timor-Leste as new WTO members. Select the correct answer:
Answer: 2 and 3 only. (Permanent PSH solution was not achieved; still under negotiation.)

14. Mains PYQs (2014–2025)

Mains 2014 (GS-II)

WTO is an important international institution where decisions taken affect countries in profound manner. What is the mandate of WTO and how binding are their decisions? Analyse the agreement on agriculture, in the context of India's stand on this.

Mains 2015 (GS-II)

Discuss the impediments India is facing in its pursuit of a permanent seat in UN Security Council. (Linkage: same reform argument applies to IMF/WB quotas.)

Mains 2016 (GS-III)

“The 'Doha Development Round' of talks under the aegis of WTO has failed to make progress.” Comment. Bring out the main issues on which negotiations remained stuck.

Mains 2017 (GS-II)

What are the main functions of the United Nations Economic and Social Council (ECOSOC)? Explain different functional commissions attached to it. (BWI + UN family context.)

Mains 2018 (GS-II)

What are the key areas of reform if the WTO has to survive in the present context of ‘Trade Wars’, especially keeping in mind the interest of India?

Mains 2019 (GS-II)

“The New Development Bank (NDB) has been set up to challenge the hegemony of western financial institutions.” Critically examine the statement.

Mains 2020 (GS-II)

“The USA is facing an existential threat in the form of a China that is much more challenging than the erstwhile Soviet Union.” Explain the implications for India in the context of USA-China trade war and IFI restructuring.

Mains 2021 (GS-II)

‘Clean energy is the order of the day.’ Describe the challenges before India in this reference. (Linked to WBG's climate agenda and Ajay Banga's Evolution Roadmap.)

Mains 2022 (GS-II)

Do you think that the BIMSTEC is a parallel organization like the SAARC? What are the similarities and dissimilarities between the two? How are Indian foreign policy objectives realized by forming this new organization? (Regional cooperation architecture linkage.)

Mains 2023 (GS-II)

‘India is an age-old friend of Sri Lanka.’ Discuss India's role in the recent crisis in Sri Lanka in the light of the preceding statement. (Linkage: India's US$ 4 bn assistance ran alongside the IMF EFF programme.)

Mains 2024 (GS-II)

The G-20 Summit under India's Presidency delivered the Delhi Declaration by consensus. Examine India's role, the permanent inclusion of the African Union, the launch of IMEC, and the Global Biofuels Alliance, and evaluate the challenges to G20's continued relevance in a fragmenting world order.

Mains 2025 (GS-III)

“Reform of the Bretton Woods Institutions has stalled while alternative architectures (AIIB, NDB, BRICS+, CRA) have emerged.” Critically evaluate India's twin-track strategy of pushing for IMF quota realignment while simultaneously anchoring the alternative architecture, and comment on the prospects for MDB reform per the N.K. Singh-Larry Summers Expert Group recommendations.

15. Revision Box — 15-Point Crisp Recap

Bretton Woods (1–22 Jul 1944): 44 nations at Mount Washington Hotel; Keynes vs White; White won; created IMF & IBRD; ITO stillborn (US Senate); GATT (1947) → WTO (1 Jan 1995).
IMF: 190 members; HQ Washington DC; MD by convention European (Georgieva, extended to 2029); India quota 2.75%, voting 2.63%, 8th largest; India Article VIII since 20 Aug 1994; creditor since 2003.
IMF facilities: SBA (short-term), EFF (structural), FCL/PLL (insurance), RFI/RCF (rapid), PRGT (concessional), RST (2022, climate/pandemic).
SDR: created by 1st Amendment (1969); basket = USD 43.38%, EUR 29.31%, CNY 12.28%, JPY 7.59%, GBP 7.44% (from 1 Aug 2022); Aug 2021 general allocation SDR 456.5 bn (largest ever).
Quota formula (2008): 0.50 GDP + 0.30 Openness + 0.15 Variability + 0.05 Reserves, compressed by 0.95; 85% supermajority for changes = US veto (17.4%).
WBG's 5 arms: IBRD (1944, non-concessional), IDA (1960, concessional), IFC (1956, private-sector), MIGA (1988, political-risk insurance), ICSID (1966, dispute settlement — India NOT a member). President Ajay Banga since Jun 2023.
WTO: HQ Geneva; 166 members; consensus decision-making; DG Ngozi Okonjo-Iweala (renewed to 2029); Appellate Body dysfunctional since Dec 2019 (US blocking).
WTO MCs: MC1 Singapore 1996; MC4 Doha 2001; MC9 Bali 2013 (TFA, Peace Clause); MC12 Geneva 2022 (Fisheries Ph-1, TRIPS waiver); MC13 Abu Dhabi 2024 (e-com moratorium extended, PSH unresolved); MC14 Cameroon 2026.
ADB (1966, Manila): 68 members; President by convention Japanese (Masato Kanda from Feb 2025); India shareholding 6.3%, 4th largest; India cumulative borrowing US$ 60+ bn.
AIIB (2016, Beijing): 109 members; President Jin Liqun (China); China 26.5% (veto); India 7.6%, 2nd largest & largest recipient; NOT part of BRI.
NDB (2015, Shanghai): BRICS-5 equal 20% each; authorised US$ 100 bn; India Regional Office at GIFT City (Aug 2022); inaugural President K.V. Kamath; current President Dilma Rousseff.
CRA (Jul 2015): US$ 100 bn BRICS forex reserve pool; China US$ 41 bn; drawings above 30% linked to IMF surveillance.
BIS (1930, Basel): oldest IFI; hosts Basel Committee (Basel I 1988, II 2004, III 2010, IV/“endgame” 2023); India Basel III fully implemented by 1 Oct 2021.
FATF (Jul 1989, Paris): 40 members; 40 Recommendations; India joined 25 Jun 2010; India MER (19 Sep 2024) — “regular follow-up” category, highest attainable.
India's G20 Presidency (Dec 2022 - Nov 2023): theme Vasudhaiva Kutumbakam; Delhi Declaration by consensus; AU admitted; IMEC launched; Global Biofuels Alliance; N.K. Singh-Larry Summers MDB reform report.

Latest Data Snapshot

IMF Members: 190 check for latest update or data
WTO Members: 166 (Comoros & Timor-Leste at MC13)
WBG President: Ajay Banga (from 2 Jun 2023)
IMF MD: Kristalina Georgieva (till 2029)
India IMF Quota: SDR 13,114.4 mn (2.75%)
India IBRD Share: ~3.05% (6th)
India AIIB Share: 7.6% (2nd)
India ADB Share: 6.3% (4th)
SDR Basket: USD 43.38%, EUR 29.31%, CNY 12.28%, JPY 7.59%, GBP 7.44%
India FATF MER 2024: “regular follow-up”

Leadership Convention

IMF MD: European (currently Kristalina Georgieva, Bulgaria)
IMF First Deputy MD: American
WBG President: American (Ajay Banga, Indian-American)
ADB President: Japanese (Masato Kanda)
AIIB President: Chinese (Jin Liqun)
NDB President: BRICS rotation (Dilma Rousseff, Brazil)
WTO DG: No convention (Ngozi Okonjo-Iweala, Nigeria)
BIS GM: No convention (Pablo H. de Cos, Spain, from Jul 2025)

Key Formulae & Numbers

IMF Quota formula: 0.50 GDP + 0.30 Openness + 0.15 Var + 0.05 Reserves (compressed 0.95)
US IMF voting: 17.4% — single-country veto on 85% supermajority
SDR basket weights: 43.4/29.3/12.3/7.6/7.4
Basel III minimum CAR: 10.5% (India: 11.5%)
Global minimum tax: 15% (BEPS Pillar 2)
Guidotti-Greenspan rule: reserves ≥ 100% of short-term external debt

Common Confusions

IMF = short-term BoP firefighter; WB = long-term development lender.
WBG has 5 arms; India is a member of 4 (NOT ICSID).
WTO = 1 Jan 1995; not 1944 (Bretton Woods only created IMF + IBRD).
AIIB is NOT part of BRI; India is 2nd largest shareholder.
NDB has 5 founding members with equal 20% shares; expanded gradually since 2021.
FATF is intergovernmental policy body, NOT a treaty organisation.
OECD is a “club of rich countries”; India is Key Partner, not member.
SDR is NOT a currency; it is a claim on freely usable currencies.
Article IV = IMF surveillance; Article VIII = current-account convertibility.

International Economic Organisations & India — IMF, World Bank, WTO & the Bretton Woods Architecture

On this page

Conceptual Clarity — Three Lenses

1. Bretton Woods & the IFI Architecture

1.1 Why Bretton Woods?

1.2 The Original Three Pillars

1.3 The Bretton Woods Exchange-Rate System (1944–1971)

1.4 The Extended Family of IFIs Today

2. International Monetary Fund (IMF)

2.1 Governance Structure

2.2 Quotas — the Heart of the Fund

2.3 India & the IMF

2.4 IMF Lending Instruments

2.5 Special Drawing Rights (SDR)

2.6 IMF Flagship Publications

3. World Bank Group — Five Arms

3.1 The Five Arms

3.2 India & the World Bank Group

3.3 Voting & Governance

3.4 Key WBG Publications & Rankings

3.5 Country Partnership Framework (CPF)

4. World Trade Organization (WTO)

4.1 India & the WTO

4.2 WTO Governance

4.3 The Three Pillars of the Uruguay Round Package

4.4 Key Agriculture Debates for India

4.5 Dispute Settlement — the Crown Jewel in Crisis

4.6 Ministerial Conferences — Key Milestones

4.7 Plurilateral vs Multilateral

5. Asian Development Bank (ADB)

5.1 Governance & Shareholding

5.2 ADB Financing Windows

5.3 India & ADB

5.4 ADB Flagships

6. AIIB — Asian Infrastructure Investment Bank

6.1 Governance & Shareholding

6.2 India & AIIB — The Numbers

6.3 Why India Joined

7. New Development Bank (NDB — the BRICS Bank)

7.1 Founding Charter

7.2 Expansion Beyond BRICS

7.3 Presidency — Rotation Convention

7.4 India-Facing NDB Projects

7.5 Contingent Reserve Arrangement (CRA)

8. BIS, FSB & Global Financial Regulation

8.1 Bank for International Settlements (BIS)

8.2 Basel Committee & the Basel Standards

8.3 Financial Stability Board (FSB)

8.4 IOSCO, IAIS, IADI — the Sectoral Trio

8.5 IFSCA — India's Answer to Basel/IOSCO

9. FATF & the Financial-Crime Architecture

9.1 The 40 Recommendations

9.2 Membership & India

9.3 The Two Public Lists

9.4 India's Domestic AML/CFT Framework

10. OECD, G20, G7 & Governance Fora

10.1 OECD — the “Rich Countries' Club”

10.2 OECD/G20 Inclusive Framework on BEPS (Base Erosion & Profit Shifting)

10.3 G7 & G20

10.4 India's G20 Presidency — 1 Dec 2022 to 30 Nov 2023

10.5 G20 “Tracks”

10.6 Other Notable Fora

11. India's Engagement, Quotas & the Reform Agenda

11.1 India's Position Across IFIs — A Snapshot

11.2 India's Reform Demands

11.3 India's Domestic IFI Interface

12. Current Affairs Anchor (2024-26)

13. Prelims PYQs (2014–2026)

14. Mains PYQs (2014–2025)

15. Revision Box — 15-Point Crisp Recap