RBI opens special dollar window for three state-run oil companies from October 12

The Reserve Bank of India (RBI) has opened a special window to meet the entire daily US dollar requirements of three state-run oil marketing companies (OMCs), as the central bank assesses prevailing market conditions.

The facility will cover Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL), according to an RBI statement. It will come into effect on Monday, October 12, 2026, and remain operational until further notice.

Under the arrangement, the RBI will sell US dollars to the three public sector oil companies through designated banks. The facility is intended to ensure that the companies can meet their full daily foreign currency requirements for their operations.

The central bank announced the measure following an assessment of current market conditions. However, it did not specify how long the facility would remain in place, stating only that it would continue until further notice.

The special window provides a dedicated channel for the three oil marketing companies to access dollars through the banking system. The RBI has not disclosed the volume of foreign currency expected to be supplied under the arrangement or provided details of any limits on individual transactions.

Oil marketing companies require US dollars to pay for crude oil imports and other overseas expenses. Since crude oil is largely traded internationally in dollars, fluctuations in the rupee-dollar exchange rate can affect the cost of imports and the companies’ financial requirements.

The RBI’s decision to meet the companies’ entire daily dollar needs through the special facility comes amid its assessment of prevailing market conditions. The move establishes a direct mechanism for supplying foreign currency to the three state-run firms through designated banks.

The central bank’s statement did not provide further details on the operational terms of the facility or indicate whether similar arrangements would be extended to other companies.

The window will remain available to IOC, HPCL and BPCL from October 12 until the RBI announces any change to the arrangement.