Reserve Bank of India has launched a special window to meet the entire daily dollar requirements of Indian Oil Corporation, HPCL, and BPCL. The facility, effective October 12, 2026, involves USD sales through designated banks to ensure smooth oil import financing.
RBI Opens Special Forex Window for PSUs to Meet Dollar Demand
The Reserve Bank of India (RBI) has announced a special arrangement to meet the full daily foreign exchange requirements of three public sector oil marketing companies (OMCs): Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). The move, effective from October 12, 2026, comes in response to evolving market conditions and increased dollar demand linked to energy imports.
Under this facility, the RBI will sell US dollars to the OMCs through designated banks. This proactive measure aims to ensure uninterrupted import of crude oil and related products by enabling timely forex availability. The central bank emphasized that the step is based on a comprehensive assessment of market liquidity and external sector developments.
For practitioners, this underscores the RBI’s continued use of targeted operational tools to manage forex market pressures. While not a regulatory change, the move may affect short-term INR-USD liquidity dynamics and is relevant for banks and corporate clients engaged in large-scale forex transactions, particularly in the energy sector.