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