RBI announces Rs 10,000 crore Open Market Operations(OMO)

News:The Reserve Bank of India(RBI) has announced Rs 10,000 crore open market operations in a bid to increase liquidity and enhance confidence in the market amid the coronavirus crisis. Facts: About Open Market Operations(OMO): Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank of… Continue reading RBI announces Rs 10,000 crore Open Market Operations(OMO)

RBI plans its own ‘Operation Twist’; to buy, sell bonds simultaneously

News:The Reserve Bank of India has announced that it will carry out US-style ‘Operation Twist’ to bring down interest rates. Facts: About Operation Twist: Operation Twist is when the central bank uses the proceeds from the sale of short-term securities to buy long-term government debt papers, leading to easing of interest rates on the long… Continue reading RBI plans its own ‘Operation Twist’; to buy, sell bonds simultaneously

Open Market Operations(OMO)

The Reserve Bank of India (RBI)’s surplus for 2018-19 was higher than the surplus in recent years.This was due to the large amount of open market operations(OMOs) conducted by the central bank during the year. Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank… Continue reading Open Market Operations(OMO)

Forex swap for liquidity has been received well, says RBI Governor

The Reserve Bank of India’s Governor has said that the market response to the foreign exchange swap arrangement announced by RBI has been received well. Recently,RBI has decided to inject long-term liquidity into the system through foreign exchange swap arrangement.The word swap means exchange. Under this arrangement,banks would be required to keep dollar funds with… Continue reading Forex swap for liquidity has been received well, says RBI Governor