ForumIAS LATEST
- 04 June | MGP Strategy Series | GS Paper 4 (Ethics) with AIR 7 A.R. Rajah Mohaideen Click Here to register for the session →
- 04 June | GS Advance Program begins from 4th June 2026 | First 2 classes open to all Click Here to register for the event →
- 05 June | MGP Strategy Series | GS Paper 3 Strategy Session with AIR 406 Mannat Luthra Click Here to register for the session
- 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
- 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
- 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →
- The Reserve Bank has said it will inject Rs 15,000 crore into the financial system through purchase of government bonds via the auction route.The government securities will be bought under Open Market Operations (OMO).
- This decision was taken as financial sector has been facing liquidity crisis ever since the Infrastructure Leasing and Financial Services Ltd (IL&FS) had defaulted in its payment obligations triggering reluctance among lenders to lend to the Non Banking Financial Company (NBFC) sector.
- Open market operations is the sale and purchase of government securities and treasury bills by the Reserve Bank of India(RBI).
- The objective of OMO is to regulate the money supply in the economy.When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market and it sells government securities to suck out liquidity from the system.
- RBI carries out the OMO through commercial banks and does not directly deal with the public.OMO is one of the tools that RBI uses to smoothen the liquidity conditions through the year and minimise its impact on the interest rate and inflation rate levels.



