Open market operation is
1
The sale and purchase of government securities and treasury bills by RBI or the central bank of the country.
2
The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF).
3
The (fixed) interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the LAF.
4
It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers.