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 
  • Go electric campaign 

National Electric Mobility Mission 

  • Launched on 2020 
  • Aim: Promoting hybrid and electric vehicles  
  • Target: 6-7 Million sales year on year from 2020 
  • Main policy is to achieve targets set under FAME Scheme 

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 

  • Low operating cost 
  • Environmentally friendly 
  • Reduced energy dependence

Issues of EVs 

  • High initial cost 
  • Limited charging infrastructure 
  • Limited domestic manufacturing capability 
  • Lack of standardisation 

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

 

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