The government on Thursday approved a proposed amendment in the IMF's articles of agreement that will increase India's quota in the multilateral funding agency.

With the proposed amendment, India's quota in IMF, in terms of Special Drawing Rights or reserve asset, will go up from 1.91 percent to 2.44 percent.

Reserve assets, which are supposed to supplement a country's official reserves comprising gold and foreign exchange, are a potential claim on the freely usable currencies of member countries to determine the exchange value of one's own currency unit.

In absolute terms, India's quota will increase from 4,158.2 million SDR to 5821.5 million SDR.