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RBI opens special dollar window for 3 oil PSUs, tightens forex derivative rules

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RBI opens special dollar window for 3 oil PSUs, tightens forex derivative rules

RBI opens special dollar window for 3 oil PSUs, tightens forex derivative rules

The Reserve Bank of India on Saturday announced a special dollar window for three public sector oil marketing companies and a set of regulatory measures for the foreign exchange market, including a sharp cut in the threshold for certain derivative transactions.

The Reserve Bank of India on Saturday announced a special dollar window for three public sector oil marketing companies (OMCs), while tightening regulations governing foreign exchange derivatives involving the Indian rupee. Under the special facility, RBI will meet the entire daily dollar requirements of Indian Oil Corporation , Hindustan Petroleum Corporation and Bharat Petroleum Corporation through dollar sales via designated banks. The facility will come into effect from October 12, 2026, and will remain in place until further notice, RBI said. The central bank announced four regulatory measures for the foreign exchange market , citing the need to ensure its orderly functioning amid evolving conditions. RBI said authorised dealers will no longer be permitted to allow users to rebook INR-involving foreign exchange derivative contracts that have been cancelled with any authorised dealer after the issuance of the directions.

However, rollover of such contracts at maturity will continue to be permitted, subject to existing regulatory provisions. The central bank has also sharply reduced the threshold for undertaking foreign exchange derivative transactions without establishing an underlying exposure. The threshold has been cut to USD 5 million from USD 100 million, across all authorised dealers. The corresponding threshold for taking positions in exchange-traded currency derivatives involving the rupee has also been reduced to USD 5 million from USD 100 million, across recognised stock exchanges taken together.


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