---
title: "Operation Twist (RBI): Yield Curve Tool | Model Diplomat"
description: "Operation Twist is an RBI strategy that buys long-term and sells short-term securities to flatten the yield curve, impacting interest rates and liquidity."
url: "https://modeldiplomat.com/learn/glossary/operation-twist-rbi"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Operation Twist is an open market operation in which the Reserve Bank of India simultaneously buys long-term government securities and sells short-term ones to flatten the yield curve.
- How does Operation Twist differ from a standard open market operation?
- Why does the RBI use Operation Twist instead of simply cutting the repo rate?
- What legal authority lets the RBI conduct Operation Twist?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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Example

On 20 December 2019, the Reserve Bank of India launched its first Operation Twist, buying ₹10,000 crore of the 6.45% 2029 bond while selling an equal value of securities maturing in 2020 to lower long-term yields.

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