What is Operation Twist by RBI?

Operation Twist is a program of Quantitative Easing used by the Reserve Bank of India (RBI). The simultaneous sale and purchase of Government securities under Open Market Operations (OMO) is known as Operation Twist. To keep the borrowing costs lower, it involves selling short-tenor bonds and buying long end debt. You can read about the Non Performing Assets (NPA) – Reasons, Classification, Impact, and Measures to Control NPA in the given link.

Further readings:

  1. RBI – Reserve Bank of India [UPSC Indian Economy Notes]
  2. Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19

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