State Bank of India on Friday said RBI's direction to oil companies
to procure half of their dollar requirements directly from a select group of PSU banks will not help stem the fall in rupee.
"I don't think it increases overall availability of dollars or it improves the rupee-dollar price," SBI Chairman Pratip Chaudhuri
told reporters after the bank's annual general meeting here.
He said the bank carries a dollar position of up to $10 million on a daily basis and to support the large demand from oil marketing companies and Reliance Industries
, the single largest importers of crude, it will have to raise money from the open market.
Concerned over rupee's downslide which touched an all time low of 57.37 a dollar on Friday, RBI today asked oil firms, which are the largest buyers of the US currency, purchase 50 per cent of their dollar needs directly through a public sector bank.
RBI feels that oil firms seeking a single quote for their dollar requirement, instead of present practice of floating enquiring with several public and private sector banks, would help check volatility and arrest the free-fall of the rupee.