Each member country has a quota based on its economic and financial strength its national income, share in world trade and monetary gold held by it. The quota also determines the voting power of a member country and its borrowing power.
India is a founder member of the fund. India’s original subscription quota was SDR (Special Drawing Rights) 400 million. The initial par value of rupee was Rs 3.30 per US dollar but, subsequently, the rupee was devalued a number of times till it stood at Rs 8.25 in 1978. At present, the external value of the rupee is not fixed but allowed to fluctuate according to market condition of demand and supply.
India has been able to borrow from the fund to overcome her balance of payments difficulties. India borrowed $ 100 million from the fund during 1948-49 but paid back the amount by 1956- 57.
Since then India has been borrowing from IMF at regular intervals in order to overcome its balance of payments difficulties. In 1981, India borrowed a massive amount of SDR 5,000 million (or Rs 5,000 crore) to overcome its external balance of payments arising basically from oil imports. India had to borrow again from IMF because of serious adverse balance of payments during 1990-91. After 1994-95 India’s loan from IMF has been declining.