RBI launches special dollar facility for state-run oil companies

The Reserve Bank of India has unveiled a special dollar window exclusively for state-owned oil companies as the Indian rupee faces sustained pressure in foreign exchange markets. The facility, which commences Monday, aims to provide these essential commodity importers with direct access to dollar liquidity during periods of heightened currency volatility.

Under the new framework, participating public sector oil undertakings will be able to access dollars through the central bank's window, helping to moderate their foreign exchange requirements during market stress. The move reflects the RBI's commitment to ensuring stability in the forex market while supporting critical infrastructure sectors that drive India's energy security.

As part of the stabilisation measures, forex dealers have been instructed not to permit users to rebook any foreign exchange derivatives. This restriction is intended to prevent speculative positioning and reduce unnecessary volatility in derivative markets during the period of rupee weakness.

The rupee has come under pressure due to a combination of factors including global interest rate differentials, capital outflows, and elevated crude oil prices. By extending targeted support to state-run oil importers, India's central bank aims to ease demand pressures on the currency while maintaining orderly market functioning.