← 12 October 2026's Current Affairs · Economy GA Prelims ★★★★☆ Mains ★★★☆☆
RBI opens special dollar window for three public sector oil companies
Why in News?
RBI will sell dollars directly to three oil companies: the forex-window logic GS-III external sector answers need
The Reserve Bank of India has opened a special window to meet the entire daily dollar requirement of Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum, selling dollars through designated banks.
Why it matters: asked in UPSC 2022
What you need to know
2 min read
The Reserve Bank of India has opened a special window to meet the entire daily dollar requirement of Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum, selling dollars through designated banks.
The facility takes effect from 12 October 2026 and stays in place until further notice.
The move comes as oil prices rise and the rupee faces pressure.
Sources: Topper IAS editorial (PIB / The Hindu / Indian Express)
Key facts
Remember these
- RBI opened a special window to meet the entire daily dollar requirement of IOC, HPCL and BPCL
- Dollars are sold through designated banks, not directly across the counter
- Effective 12 October 2026 and continues until further notice
- Context: rising oil prices and pressure on the rupee
- Oil marketing companies are major buyers of dollars because crude is imported and paid for in dollars
Prelims · Mains
How the exam will ask it
Prelims
- The Reserve Bank of India manages the foreign exchange market and can intervene by selling dollars to curb rupee volatility.
- Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum are public sector oil marketing companies.
- A special dollar window meets oil companies' demand directly, reducing their purchases in the open market.
Mains
GS-III (Economy: monetary policy, external sector). Oil import bills drive dollar demand and rupee pressure; by meeting the three public sector OMCs' dollar needs through a dedicated RBI window, the central bank takes a large buyer out of the spot market and curbs volatility. Implications include drawdown of forex reserves and moral hazard, so a way forward lies in reserve adequacy, diversified crude sourcing and deeper hedging markets.
PYQ connection
A question UPSC has already asked on this
With reference to the Indian economy, consider the following statements:
- If the inflation is too high Reserve Bank of India (RBI) is likely to buy government securities.
- If the rupee is rapidly depreciating RBI is likely to sell dollars in the market.
- If interest rates in the USA or European Union were to fall that is likely to induce RBI to buy dollars.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Show answer
Answer: B
Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.
Practise this PYQ →Quick recall
Answer before you reveal
With reference to the Reserve Bank of India's special window announced for oil marketing companies, consider the following statements:
- The Reserve Bank will sell dollars to Indian Oil, Hindustan Petroleum and Bharat Petroleum through designated banks.
- The facility is effective from 12 October 2026 and continues until further notice.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Show answer
Answer: C — Both 1 and 2 are correct: the RBI sells dollars to the three OMCs via designated banks from 12 October 2026 until further notice.
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