- 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
a. Rs 10,000 crore
b. Rs 20,000 crore
c. Rs 15,000 crore
d. Rs 25,000 crore