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RBI to Conduct OMO of Rs 20,000 Crore

Published on February 09, 2021
Current Context: The Reserve Bank of India (RBI) announced that it will conduct Open Market Operations (OMOs) which amounts to Rs 20,000 crore.
RBI to Conduct OMO of Rs 20,000 Crore
  • RBI announced that it will purchase 4 government securities (G-Secs) which cost to Rs 20,000 crore.
  • The move by the central bank was announced in the regards of the yields that were moving up to touch the intra-day high of 6.1634% recently.
  • This created concerns about higher government borrowing to the RBI.
  • After the announcement of OMO purchase, the yield on the benchmark 10-year G-Sec, carrying a coupon rate of 5.77 %, slowed down by 3-4 basis points.
  • The RBI will be purchasing long-term security maturing in 2024, 2028, 2030 and 2034.
  • Static Part: 
    • HQ of RBI: Mumbai
    • Governor of RBI: Shaktikanta Das
    • Open Market Operations: It is the purchase and sale of the Government securities (G-Secs) by RBI from and to the market. It helps to maintain rupee liquidity conditions in the economy

Question: 

Q.1 Recently RBI announced to conduct OMO worth Rs _____, under this RBI will be purchasing long-term security maturing in 2024, 2028, 2030 and 2034?
a. Rs 10,000 crore
b. Rs 20,000 crore
c. Rs 15,000 crore
d. Rs 25,000 crore
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