Archive · 10 Oct 2026
RBI Opens Dollar Window for Oil Firms Amid Rupee Pressure
The Reserve Bank of India is setting up a special way for three state-run oil companies to get all the dollars they need each day.
Indian Oil, Hindustan Petroleum and Bharat Petroleum can use it from October 12, 2026.
The dollars will come through selected banks instead of the companies buying them in the usual market.
The RBI hopes the change will ease pressure on the market while the rupee is weak.
The RBI also tightened rules for some trades connected to the rupee.
The rupee closed near a level described as its weakest ever.
The RBI has not said how many dollars it expects to supply or given all the operating details.
An ANZ strategist said the arrangement could reduce market demand and volatility, but would draw on foreign-exchange reserves.
The Reserve Bank of India will supply the full daily dollar requirements of Indian Oil, Hindustan Petroleum and Bharat Petroleum through designated banks from October 12, 2026, until further notice.
The facility shifts the companies’ dollar purchases from open-market sourcing to a dedicated channel; the RBI did not disclose expected volumes or individual transaction limits.
The RBI also prohibited rebooking foreign-exchange derivatives and cut the exchange-traded rupee-derivatives position limit from $100 million to $5 million.
Forex dealers must maintain a foreign-exchange risk reserve equal to 20% of the notional amount of each rupee derivative contract.
The rupee closed at 96.73 per dollar on Friday, near its cited record low of 96.96; one trader reported a roughly 40-paise fall in the one-month dollar/rupee non-deliverable forward contract on Saturday in very thin trading.
- Who
- The Reserve Bank of India and the three oil companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
- What
- A special facility to supply the companies’ full daily dollar requirements through designated banks, alongside tighter foreign-exchange derivative rules.
- When
- Announced on October 10, 2026; the facility is scheduled to begin October 12 and continue until further notice.
- Where
- India, with dollar sales routed through designated banks.
- Why
- To meet the oil companies’ daily foreign-currency needs and ease pressure on the spot market amid rupee weakness.
Expected market benefit
Costs and uncertainty
Effect on currency trading
Expected market benefit
ANZ strategist Dhiraj Nim said meeting the oil companies’ dollar needs outside the FX market could remove a major source of demand and help reduce volatility.
Costs and uncertainty
Nim said the dollar supply would be reflected in a depletion of foreign-exchange reserves.
Scope and transparency
Expected market benefit
The RBI said the facility would cover the three companies’ full daily dollar requirements and remain in place until further notice.
Costs and uncertainty
The RBI did not disclose expected supply volumes, individual transaction limits or complete operating terms, and did not indicate whether other companies would receive similar access.
- Eligible companies
- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation
- Facility start
- October 12, 2026
- Facility duration
- Until further notice
- Dollar supply
- The RBI will sell dollars through designated banks to meet the companies’ full daily requirements.
- Exchange-traded position limit
- Reduced from $100 million to $5 million for positions in rupee-linked currency derivatives.
- Derivative reserve requirement
- Forex dealers must maintain a reserve equal to 20% of each contract’s notional amount.
- Rupee close
- 96.73 per US dollar on Friday, near the cited record low of 96.96 reached in May.
- Undisclosed details
- The RBI did not specify dollar volumes, individual transaction limits or detailed operating terms.
Sources
RBI opens special dollar window for three state run oil companies from October 12
Reserve Bank of India takes steps to support rupee, opens dollar window for oil companies
RBI steps up rupee support, opens dollar window for oil companies