Open market operations

Purchase and sales of government securities in open market by Central bank directly

Need for OMOs:

Regulate money supply in bank reserves
Regulate money in circulation
Adjust intra bank lending rates and there by short term, long term and foreign exchange rates.
Affect economical factors such as unemployment, output and cost of goods and services.
Helps maintain inflation within target

Types of OMOs

Permanent open market operations
- Central bank directly buys or sells G Secs in the market o To achieve monetary policy targets
- Aims to achieve long term goals
Temporary open market operations
- Temporary transactions comprising of repos or reverse repos
- To add or drain reserves available to banking system on short term basis
- Often reversed in short duration

Benefits of OMOs:

Prevent price inflation or deflation without directly interfering in market economy
Helps moderate business cycle and reduce economic shocks

Recently in NEWS:

RBI Governor said that Central bank will consider open market operation sales to manage liquidity in consistence with stance of monetary policy

MONETRAY POLICY COMMITTEE

- - constituted under the Reserve Bank of India Act, 1934
  - Aims at fixing the benchmark policy interest rate to influence inflation
  - Meets at least 4 times a year
  - Comprises of 6 members with Governor of RBI as the chairperson

Electric vehicles (EV)
Vehicles that run mostly or entirely on electricity are referred as electric vehicles

Schemes related to EVs

National Electric Mobility Mission

FAME India

Faster Adoption and Manufacturing of (Hybrid &) Electric vehicles in India Scheme
Implemented by Ministry of Heavy Industries
Objectives
- To achieve national energy security
- Mitigate impact on environment
- Promote growth of domestic manufacturing industries • Pillars of FAME
- Demand creation
- Technological platform
- Pilot projects
- Charging Infrastructure

Steps taken
- PLI Schemes for automotive sector
- PLI Schemes for Advanced Chemistry Cell
- GST on EVs reduced from 18% to 5%

Go electric campaign

To achieve 100% e-mobility and clean and safe e-cooking • To create awareness at pan India level and to reduce import dependence
Implemented by Bureau of Energy Efficiency, Ministry of Power

Benefits of EVs

Issues of EVs

Other NEWS

Graded response action plan	• Grap is an emergency response plan implemented only when air quality dips below a certain threshold • Notified by the environment ministry • Response to the severe pollution experienced by delhi and adjoining areas
Singraeni colleries	• Union ministry of home affairs has ruled that the singareni collieries company limited (sccl) belongs to telangana. • No coal blocks of sccl is found to be situated in andhra pradesh
District formation	• State government has the authority to form new districts, or alter or abolish existing ones. • Created by passing an executive order or passing a law in the state assembly
Amphibians	• The study title: ‘ongoing declines for the world’s amphibians in the face of emerging threats’ • Published by scientific journal, nature • Two out of every five amphibians are threatened with extinction • Climate change was the primary threat for 39% of these species. • Habitat destruction and degradation affect 93% of all threatened amphibian species