International Relations GS 2 In the news 3 times

Open Market Operations (OMOs)

OMOs are transactions where the RBI buys or sells government securities (G-secs) in the open market to manage durable (long-term) liquidity. When the RBI buys G-secs, it injects permanent rupee liquidity; when it sells, it absorbs. OMOs are used for managing the structural (as opposed to frictional) liquidity deficit. Unlike repo operations (which are short-term), OMOs have a permanent liquidity effect.

Key details

OMOs conducted in 2025-26: Rs 2 lakh crore in four tranches (Dec 29, Jan 5, Jan 12, Jan 22)
Target: Address structural liquidity deficit in the banking system
G-secs purchased: Central government dated securities
Impact: Reduces yield on G-secs, transmits to lending rate reductions

In the news

● Tracked since March 06, 2026 · last seen April 23, 2026 · updates as the daily brief publishes

23 Apr '26

Repo rate hike not on the cards, for now, says Ram Singh, external member of MPC

Economics

08 Apr '26

RBI agrees to 'demand from some quarters,' unveils first-ever core inflation projection at 4.4% for FY27

Economics

06 Mar '26

RBI announces OMO Purchase of Government of India Securities

Economics

Related concepts

Economy

Monetary Policy Committee (MPC)

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