Archive · 10 Oct 2026
RBI Opens Special Dollar Window for Three State-Run Oil Companies
Oil companies need US dollars to pay for oil bought from other countries.
Usually, they get those dollars by buying them in the open market with rupees.
The Reserve Bank of India has set up a special way for three state-run oil companies to get the dollars they need each day.
They will receive the dollars through designated banks.
The arrangement begins on October 12, 2026, and will continue until the RBI says otherwise.
An expert said the three companies account for about 90% of petroleum product sales in India.
Another expert suggested that dollars from FCNR bonds could help meet the demand.
The facility is intended to support the rupee, but the article does not give a measured estimate of its effect.
The Reserve Bank of India announced a special USD facility on October 10, 2026.
The facility starts October 12 and will remain in place until further notice.
It will cover the daily dollar requirements of Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation.
The RBI will sell USD to the companies through designated banks, rather than requiring them to buy dollars in the open market.
Market expert Sandeep Pandey said the three companies account for about 90% of domestic petroleum product sales; another expert suggested FCNR bond proceeds could help supply the dollars.
- Who
- The Reserve Bank of India and the three public-sector oil marketing companies: Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited.
- What
- A special facility to meet the companies’ daily USD requirements for oil purchases through designated banks.
- When
- Announced October 10, 2026; effective October 12, 2026, until further notice.
- Where
- India.
- Why
- To meet the oil companies’ dollar needs and support the Indian rupee.
- Announced
- October 10, 2026
- Effective date
- October 12, 2026
- Duration
- Until further notice
- Facility
- RBI sale of USD to the three OMCs through designated banks
- Companies covered
- Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited
- Sales share cited
- Sandeep Pandey said the three companies together account for around 90% of net petroleum product sales in India.
- Possible USD source
- Anuj Gupta said USD received from FCNR bonds could be a primary source; he also mentioned converting deposits through swaps.