Daily News Analysis

Open Market Operations (OMO)

stylish_lining

Open Market Operations (OMO)

 

 

  1. It refers to the purchase and sale of securities (treasury bills and government securities) in open market by the central bank of any country.
  2. This is done to regulate money supply in the economy.
  3. OMO is one of the most important ways of monetary control that is exercised by the central banks. 
  4. The central bank sells securities in the market when it wants to reduce the money supply in the market, with an intention to increase interest rates. This policy is also known as the contractionary monetary policy.
  5. The central bank purchase securities from the market when it wants to increase the money supply in the market. This step is taken to reduce the rate of interest and also to help in the economic growth of the country. This policy is known as the expansionary monetary policy.
  6. There is no involvement of the public in OMO and are carried out by the central bank in association with the commercial banks.

Cultural Appropriation

Cultural appropriation refers to the adoption of elements from one culture by members of another, often in ways that exploit, disrespect, or commodify the original culture. This becomes particular
Share It

GIAHS Programme and India’s Agricultural Heritage

India, home to diverse agricultural systems, has recently gained recognition for hosting three Globally Important Agricultural Heritage Systems (GIAHS). This milestone was highlighted by the Minis
Share It

Made in India Label Scheme

The Made in India Label Scheme has recently been supported by a proposed allocation of INR 995 crores over the next three years, a move that highlights the Indian government’s commitment to
Share It

RBI’s 7 Sutras for AI Adoption

The Reserve Bank of India (RBI) has recently introduced the Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI), outlining 7 guiding sutras for the ethical use of
Share It

Left-Wing Extremism (LWE)

India’s fight against Left-Wing Extremism (LWE) has seen notable progress, marked by a dramatic reduction in insurgent incidents and a significant contraction of the Red Corridor. The insurg
Share It

Didayi Tribe

The Didayi Tribe in Odisha has made headlines with Champa Raspeda, a student from the tribe, becoming the first member to clear the NEET 2025 exam. About the Didayi Tribe Location: Th
Share It

INS Aridhaman

India is set to significantly strengthen its strategic defence capabilities with the upcoming induction of INS Aridhaman, the third nuclear-powered ballistic missile submarine (SSBN) in its fleet.
Share It

Fast Track Special Courts Scheme

The Fast Track Special Courts (FTSCs) Scheme, which was introduced by the Ministry of Law & Justice under the Nirbhaya Fund, is an initiative aimed at expediting the trial of rape and child se
Share It

Elephant Conservation in India

World Elephant Day: A Global Conservation Effort On 12th August 2025, the Ministry of Environment, Forest and Climate Change (MoEF&CC) observed World Elephant Day in Coimbatore, with a focu
Share It

Flash Flood in Dharali Village

The flash flood in Dharali village, Uttarkashi, highlights the growing threat of disasters caused by extreme weather events in the Indian Himalayan Region (IHR). Factors Driving Frequent Disast
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS