Open Market Operations (OMOs) involve the buying and selling of government securities by the Reserve Bank of India (RBI) in the open market. This action directly impacts the level of liquidity (money supply) in the banking system. By changing the money supply, OMOs influence interest rates, which in turn affect the demand for credit in the economy. This is an indirect way of controlling credit availability and cost, as opposed to direct methods like credit rationing or sector-specific lending directives.