New Delhi, 10 October (H.S.): The Reserve Bank of India (RBI) will extend special foreign exchange support to public sector oil and gas marketing companies to meet their dollar requirements for purchasing crude oil from international markets. The facility will come into effect on October 12, 2026, and remain operational until further notice.

In a statement issued on Saturday, the RBI announced that it would establish a special foreign exchange window to meet the daily US dollar requirements of three public sector oil marketing companies (OMCs): Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).

Under the arrangement, the central bank will sell US dollars to these companies through designated banks to facilitate their foreign currency requirements.

The RBI has also announced several regulatory measures aimed at strengthening discipline in the foreign exchange market, ensuring prudent risk management and maintaining an orderly and transparent market environment.

The measures come amid persistent geopolitical tensions and global economic uncertainties, which have continued to put pressure on the Indian rupee. The domestic currency closed at 96.71 against the US dollar on Friday.

The special dollar window is intended to help the three state-run oil marketing companies meet their routine foreign exchange requirements for crude oil purchases while supporting orderly functioning of the foreign exchange market.

As part of its broader efforts to curb speculative activity and stabilise the rupee, the RBI has also introduced restrictions on foreign exchange derivatives transactions. Under the new provisions, banks will not be permitted to rebook a foreign exchange derivatives contract once a customer has cancelled it.

The measures are aimed at discouraging speculative transactions, strengthening risk management practices and promoting greater stability and transparency in the foreign exchange market.

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Hindusthan Samachar / Jun Sarkar