Open Market Operations (OMO) refer to the buying and selling of government securities by the Reserve Bank of India (RBI) in the open market, which is a key tool for monetary policy. Through OMOs, the RBI aims to regulate the money supply and interest rates in the economy; purchasing securities injects liquidity, stimulating economic activity, while selling securities absorbs excess money, helping to control inflation. This mechanism directly impacts the availability of funds in the banking system, making it crucial for maintaining financial stability and achieving the RBI’s objectives of price stability and economic growth, which are critical topics in UPSC syllabus.