CURRENT AFFAIRS

2023

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
RBI has announced special OMO for how much amount?
A
Rs 10, 000 crore
B
Rs 20, 000 crore
C
Rs 30, 000 crore
D
Rs 40, 000 crore
Explanation: 

Detailed explanation-1: -The Reserve Bank of India (RBI) on Monday announced that it will purchase government securities worth ₹20, 000 crore through open market operations (OMOs) in a bid to cap yields of treasury bonds and support an expanded government borrowing programme.

Detailed explanation-2: -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-3: -The Reserve Bank of India (RBI) will transfer Rs 30, 307 crore as surplus to the government for fiscal ended March 2022 down 69% from the Rs 99, 126 crore in the year ended March 2021 and lower than the Rs 74, 000 crore budgeted by the government for the current fiscal.

Detailed explanation-4: -On June 4, 2021, it was decided to open a separate liquidity window of ₹15, 000 crore at the repo rate with tenors of up to three years available till March 31, 2022 for certain contact-intensive sectors.

Detailed explanation-5: -Open market operations refer to the selling and purchasing of the treasury bills and government securities by the central bank of any country in order to regulate money supply in the economy. It is one of the most important ways of monetary control that is exercised by the central banks.

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