RBI Boosts Liquidity by ₹2.90 Lakh Crore to Stabilize Financial System

सही उत्तर: D

Statement 1 is correct: Outright OMOs involve permanent buying/selling of government securities, leading to a permanent injection/absorption of liquidity. Statement 2 is correct: While traditionally OMOs refer to government securities, RBI uses various market operations including forex swaps to manage liquidity. Dollar-rupee buy/sell swaps involve RBI buying dollars (injecting rupees) and simultaneously agreeing to sell them back later (absorbing rupees), or vice-versa, thus managing both rupee liquidity and influencing the exchange rate. Statement 3 is correct: OMOs are a key quantitative tool of monetary policy used by central banks to influence the money supply, short-term interest rates, and overall credit conditions in the economy, thereby impacting inflation and growth.

सही उत्तर: A

Statement 1 is correct: When RBI buys dollars spot, it pays in rupees, thereby injecting rupee liquidity into the system. The forward sale commitment is a future absorption. Statement 2 is incorrect: Tightening liquidity conditions mean less money is available in the system, which typically leads to an *increase* in short-term market interest rates, making borrowing *costlier* for banks. Statement 3 is incorrect: The MPC is responsible for setting the policy repo rate to achieve the inflation target. Decisions regarding the quantum and timing of liquidity operations like OMOs are operational decisions taken by the RBI's internal departments, guided by the overall monetary policy stance set by the MPC.

सही उत्तर: C

Option A is correct: Injecting liquidity makes more funds available to banks, which can lead to a reduction in their cost of funds and potentially ease lending rates. Option B is correct: The primary aim of liquidity injection is to ensure banks have sufficient funds to meet credit demand. Option C is incorrect: Injecting liquidity (especially through OMO purchases of government securities) increases demand for bonds, which typically leads to *downward* pressure on bond yields (as bond prices rise). Upward pressure on bond yields would occur during liquidity tightening. Option D is correct: By ensuring adequate credit, liquidity injection supports investment and consumption, thereby aiding economic activity.

सही उत्तर: B

Statement 1 is correct: The RBI Act, 1934, as amended, specifies the primary objective of monetary policy as maintaining price stability while keeping in mind the objective of growth. Statement 2 is correct: The RBI performs the traditional central banking function of acting as a banker to the government and manages public debt. Statement 3 is incorrect: While RBI regulates and supervises many financial institutions, it is not *solely* responsible for *all* of them. For instance, some cooperative banks are also regulated by state governments, and there are other regulators like IRDAI for insurance, PFRDA for pensions, and SEBI for capital markets. While RBI has significant oversight over NBFCs, the statement 'solely responsible for all financial institutions' is too broad and incorrect.