Interview Guidance Program (IGP) for UPSC CSE 2024, Registrations Open Click Here to know more and registration
- The Reserve Bank of India (RBI)’s surplus for 2018-19 was higher than the surplus in recent years.This was due to the large amount of open market operations(OMOs) conducted by the central bank during the year.
- Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank of the country.
- The objective of OMO is to regulate the money supply in the economy. The central bank carries out the OMO through commercial banks and does not directly deal with the public.
- 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 out liquidity from the system.
Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants
Subscribe to get the latest posts sent to your email.
