Context: Recently, Union Minister of Finance & Corporate Affairs attended the Plenary Meeting of the International Monetary and Financial Committee through video-conference .
Key Highlights of the Plenary Meeting of IMFC

• The discussions at the meeting were based on IMF Managing Director’s Global Policy Agenda titled, “Exceptional Times – Exceptional Action”.
• The members of the IMFC updated the committee on the actions and measures taken by member countries to combat COVID-19.
• It was also remarked on IMF’s crisis-response package to address global liquidity and members’ financing needs.
• Finance Minister also informed the IMFC about India’s role as a responsible member of the global community by providing critical medicines to other nations.

In her intervention at the meeting, FM outlined various measures taken in India to respond to the health crisis as well as to mitigate its impact. In this regard, she mentioned about following:

• Allocation of $2 Billion (Rs 15,000 crore) by the Government of India for strengthening the healthcare system;
• Announcement of a scheme of social support measures amounting to $23 Billion (Rs 1.70 lakh crore) to alleviate the hardship of the poor and the vulnerable;
• Provision of relief to firms in statutory and regulatory compliance matters;
• Easing of monetary policy by the RBI;
• Three-month moratorium on loan instalments.
• She also mentioned about Prime Minister’s initiative of creating a COVID-19 Emergency Fund for the SAARC region at the SAARC Leaders’ video-meeting.

About International Monetary and Financial Committee (IMFC)
Its Composition

• It has 24 members, drawn from the pool of 187 governors.
• Its structure mirrors that of the Executive Board and its 24 constituencies. 
• As such, the IMFC represents all the member countries of the Fund.

Its Functions 

• The IMFC meets twice a year, during the Spring and Annual Meetings. 
• The Committee discusses matters of common concern affecting the global economy and also advises the IMF on the direction its work.
• At the end of the Meetings, the Committee issues a joint communiqué summarizing its views. 
• These communiqués provide guidance for the IMF’s work program during the six months leading up to the next Spring or Annual Meetings. 
• There is no formal voting at the IMFC, which operates by consensus.

Its objective

• The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system.
• It also considers proposals by the Executive Board to amend the Articles of Agreement and advises on any other matters that may be referred to it by the Board of Governors.
• Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the Fund.