Investment in IMF is good: RBI

SURATPUR ( Varanasi): Reserve Bank Deupty Governor KC Chakrabarty on Saturday said the investment in the International Monetary Fund by purchasing $10 billion worth of its notes is a good decision as the country has surplus foreign exchange reserves.

Speaking to reporters on the sidelines of an RBI outreach programme at Surtapur in Chandauli, near Varanasi, where biometric smart cards were distributed, he said "the country has over USD 286 billion in foreign exchange and this is a good and safe investment."

"This is a part of our international efforts to support the IMF's lending capacity," Chakrabarty said.

Asked about the enhancement of country's voting rights in IMF after the purchase, Chakrabarty said, "It will have to be estimated as per the purchases of the other big countries.

Yesterday, the RBI signed an agreement with the Fund to purchase up to $10 billion worth notes from the multilateral agency. The note purchase follows an endorsement by the IMF executive board on July 1, 2009 to this effect.

Replying to a question on fake currency, he said, "it is not possible to eradicate the fake currency menace completely as it is a law and order problem.