The Reserve Bank of India has established a special facility to meet the full daily foreign exchange requirements of three public sector oil marketing companies starting October 12, 2026. The move aims to ensure smooth forex access for critical energy imports.
RBI Establishes Dedicated Dollar Window for PSU OMCs
The Reserve Bank of India (RBI) has announced a special facility to fully meet the daily US dollar requirements of three public sector oil marketing companies—Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). The facility will be operational from October 12, 2026, with the RBI conducting USD sales to these entities through designated banks.
This targeted intervention is based on an assessment of current market conditions and the critical nature of energy imports. By guaranteeing full dollar coverage, the RBI aims to insulate PSU OMCs from exchange rate volatility and ensure seamless import operations, particularly in light of global geopolitical and supply-chain uncertainties.
Practitioners advising energy sector clients should note the precedent of targeted forex support for strategic public enterprises. While the measure is limited in scope, it signals proactive RBI engagement in managing sector-specific external sector risks, which may influence future policy on forex allocation for essential imports.