RBI launches special dollar window to fund $300 million daily oil imports

Reserve Bank of India will open a special dollar window from Monday, Oct 12, 2026, to meet the full daily foreign‑exchange needs of three public‑sector oil marketing companies. The three firms – Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd – together require about $300 million each day to pay for crude oil imports. Under the new facility they can buy dollars directly from the RBI through designated banks, cutting their reliance on the spot market. RBI said the window will stay in place until further notice. By supplying the firms’ dollar demand centrally, the central bank hopes to ease buying pressure that can push the rupee lower as crude prices rise. India’s foreign‑exchange reserves sit near $735 billion, giving the RBI a large buffer. The bank has recently mobilised over $127 billion via foreign‑currency non‑resident deposits and another $9 billion through overseas borrowings. Experts pointed to foreign‑investor outflows, higher overseas rates and tighter policies abroad as additional strains on the rupee. Governor Sanjay Malhotra earlier this week assured that the RBI would help stabilise what he called an undervalued rupee. The RBI also instructed authorised dealers not to allow rebooking of any rupee‑linked foreign‑exchange derivative that has been cancelled.

Context

The move comes as higher global oil prices swell India’s import bill and widen the trade deficit, making dollar demand from oil firms a key factor in short‑term currency volatility.