From mint · Asit Manohar · · 1m 20s
RBI opens USD window for oil PSUs
RBI's new USD facility for oil PSUs aims to stabilize INR against dollar pressure.
In brief
RBI's new USD facility for oil PSUs aims to stabilize INR against dollar pressure. RBI opens special USD window for Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum to buy dollars from banks instead of open market, supporting INR against dollar volatility. Originally reported by mint.
RBI opens special USD window
RBI opens special USD window for three state-run oil marketing companies starting October 12, 2026.
Which oil PSUs qualify
The facility covers Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd, and Bharat Petroleum Corporation Ltd.
How the facility works
OMCs will buy usd from designated banks instead of the open market to meet daily dollar requirements for oil purchases.
Why it matters for INR
The three oil PSUs account for 90% of india's petroleum product sales, helping stabilize the indian rupee against dollar volatility.
Expert analysis
Sandeep Pandey notes the oil psus cover 40% for iocl, 30% for bpcl, and 20% for hpcl of india's oil imports.
Government funding source
The government will use fcnr bonds and deposit swaps to meet additional usd demand from the oil psus.
What happens next
The facility remains in effect until further notice to support the indian rupee against dollar pressure.
What matters most
RBI opens special USD window for Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum to buy dollars from banks instead of open market, supporting INR against dollar volatility.
