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What is Open Market Operations? Types

Open Market Operations: The Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of government securities (G-Sec) under Open Market Operations (OMOs) for an amount of Rs. 10,000 crore each. Simultaneous purchase and sale of government securities under OMOs, popularly known as operation twist, involves purchasing G-Sec of longer maturities and […]

Bank Credit And Deposits Grew in Feb 2021 : RBI – Reasons

Bank Credit And Deposits grew: RBI: Recent data released by the Reserve Bank of India (RBI) showed that Bank credit and deposits grew and were higher in February 2021 than January 2021. The credit and deposits for February 2021 were even higher than the pre-pandemic data of February 2020. Bank by RBI: At the end […]

What is Prompt Corrective Action Framework of RBI?

Prompt Corrective Action Framework: The Reserve Bank of India has taken IDBI Bank Ltd out of its prompt corrective action list after it found the state-run lender was not in breach of the central bank’s parameters. IDBI Bank was placed under the so-called PCA framework in 2017 over its high bad loans and a negative […]

What Is Inflation Targeting?

Inflation Targeting: The Reserve Bank of India (RBI) in its Currency and Finance (RCF) report for the year 2020-21 has said that the current inflation target band (4% +/-2%) is appropriate for the next 5 years. Inflation Targeting: It is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual […]

What Is Credit Default Swap?

Credit Default Swap: The Reserve Bank of India revealed the credit default swaps (CDS) and has allowed the retail users to do the transactions in permitted credit derivatives in order to hedge their underlying credit risk. Key Highlights: As per the guidelines, the non-retail users will be allowed to do the transactions in credit derivatives […]

Financial Literacy Week 2021 : RBI

Financial Literacy Week 2021: The Reserve Bank of India (RBI) has launched the Financial Literacy Week (FLW) for the year 2021. The literacy week started from February 8 and will conclude on February 12, 2021. Financial Literacy Week (FLW)-2021 This year, the Financial Literacy week will focus on ‘Developing the credit discipline and encouraging availing […]

Open Market Operations : RBI Announces Rs. 20,000 Crore

Open Market Operations: RBI announces ₹20,000 crore open market operations on February 10. Open market operations are 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. It is one of the quantitative […]

Direct Access To Its Government Securities Trading Platform : RBI

Direct Access To Its Government Securities Trading Platform: The Reserve Bank of India (RBI) has given small investors direct access to its government securities trading platform. Now, Retail investors can directly open their gilt accounts with RBI, and trade in government securities. What is the need for the current proposal, then? The g-sec market is […]

RBI Monetary Policy 2021 : GDP Forecast

RBI Monetary Policy 2021: The Reserve Bank of India (RBI) has forecasted that real Gross Domestic Product (GDP), hit by the Covid pandemic in 2020-21, is expected to grow by 10.5% in 2021-22. RBI had previously introduced a number of measures in its Monetary Policy Report for dealing with the Covid-19 induced economic setback. GDP […]