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Finance & Markets · 2 stories · About 1 minutePublished 7:00 am IST

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  1. 01Finance & MarketsRBI opens special dollar window for public sector oil marketing companiesThis intervention directly stabilizes foreign exchange liquidity for India's major energy importers.
  2. 05Finance & MarketsRBI restricts forex derivatives and mandates cash reserves to stabilize the rupeeThese regulations force tighter risk management on market participants by curbing speculative positioning.
Finance & MarketsLead story01 / 06

RBI opens special dollar window for public sector oil marketing companies

File photograph: Reserve Bank of India.
File photograph: Reserve Bank of India. · Kolkatan / Wikimedia CommonsCC BY-SA 3.0

What happened

The Reserve Bank of India (RBI) has established a special window to supply the full daily US dollar requirements for state-run firms Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum. The central bank will sell dollars directly to these entities through designated banks, contingent on its assessment of prevailing market conditions.

Why it matters

This intervention directly stabilizes foreign exchange liquidity for India's major energy importers. By providing a dedicated supply channel for these companies, the RBI aims to mitigate the impact of their large-scale currency demand on broader market volatility.

Bigger picture

The mechanism serves as a strategic liquidity tool to manage potential forex stress, demonstrating the central bank's readiness to bypass commercial market fluctuations to support critical state-backed energy operations.

Watch next

The facility begins operations on October 12, 2026. Monitor the RBI for subsequent notices regarding the duration of this window.

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Finance & Markets05 / 06

RBI restricts forex derivatives and mandates cash reserves to stabilize the rupee

File photograph: Reserve Bank of India.
File photograph: Reserve Bank of India. · Vyacheslav Argenberg / Wikimedia CommonsCC BY 4.0

What happened

The Reserve Bank of India issued circulars restricting the rebooking of cancelled INR derivative contracts. The threshold for hedging without underlying exposure was reduced from USD 100 million to USD 5 million. Additionally, Authorised Dealers must now maintain a cash Foreign Exchange Risk Reserve with the RBI equal to 20% of the notional value for contracts exceeding USD 2 million.

Why it matters

These regulations force tighter risk management on market participants by curbing speculative positioning. By increasing cash holding requirements and lowering the threshold for verifying underlying exposures, the RBI is directly intervening to reduce volatility and strengthen the rupee.

Bigger picture

The mandate reflects a proactive regulatory shift toward stricter oversight of India’s foreign exchange market. The introduction of specific liquidity reserves suggests the central bank is prioritizing structural market stability over trading volume amid ongoing currency pressure.

Watch next

Monitor implementation by Authorised Dealers and Recognised Stock Exchanges regarding the new verification requirements and the ongoing maintenance of cash reserves.

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