The ‘Open Market Operations’ refers to
A. Borrowing by scheduled banks from the RBI
B. Lending by commercial banks to industry and trade
C. Purchase and sale of government securities by the RBI
D. None of these
Explanation:
The Reserve Bank of India (RBI) announced to transfer ₹99,122 crore to the government from its profit, helping the Centre keep its fiscal deficit in check amid strained public finances because of the pandemic. This surplus likely reflects the central bank’s higher income from their open market operations as well as receipts from FX sales. Open market operations or OMOs are conducted by the Reserve Bank of India (RBI) by way of sale and purchase of G-Secs (government securities) to and from the market with an objective to adjust the rupee liquidity conditions in the market on a durable basis.
