The Reserve Bank of India (RBI) has recently announced that it would buy.....of government bonds via open market operation (OMO), after failing to sell all the debt it had offered to bidders.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Reserve Bank of India (RBI) has recently announced that it would buy____of government bonds via open market operation (OMO), after failing to sell all the debt it had offered to bidders.

A	Rs5,000 crore
B	Rs10, 000 crore
C	Rs12, 000 crore
D	Rs15, 000 crore

Explanation:

Detailed explanation-1: -Impact on Money Supply: When RBI buys a Government bond in the open market, it pays for it by giving a cheque. This cheque increases the total amount of reserves in the economy and thus increases the money supply.

Detailed explanation-2: -You can now buy and sell government bonds directly via the RBI Retail Direct (RRD) platform. There are four types of securities available: 1. Treasury Bills (T-Bills) of the Indian Government – These are short-term debt instruments issued by the Government of India for tenors of 91 days, 182 days, and 364 days.

Detailed explanation-3: -RBI imposes monetary penalty on IndusInd Bank Ltd (the bank) for non-compliance with certain directions issued by RBI on ‘Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016’.

There is 1 question to complete.