Big step by RBI to stop the increasing pressure on rupee, special dollar facility started for three government oil companies

The Reserve Bank of India (RBI) has taken a very important and strategic step to provide relief to the Indian currency from the continuous pressure being faced in the foreign exchange market. The central bank has approved a loan for the country’s three major government oil marketing companies (OMCs). Special Dollar Facility Has announced to start. This new arrangement will become effective from October 12, 2026 and will remain in force until further orders. The main objective of this step is to reduce the pressure of sudden increase in huge demand for dollars in the open market during the import of crude oil from the international market and to strengthen the position of the rupee.

Which three government companies will get the benefit of this special facility?

The scope of this special dollar facility launched by RBI has been limited to the three largest government oil companies of the country. in these Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). Are included. India imports most of its crude oil needs from abroad, for which these companies require huge amounts of US dollars. Till now, these companies used to buy from the open market to meet their daily dollar requirement, due to which the demand for dollars in the foreign exchange market increased rapidly and had a direct impact on the value of the rupee.

The pressure of demand for dollars on the open market will reduce

There was constant pressure on the domestic currency due to huge quantities of dollars being purchased simultaneously by the giant oil companies. According to experts, the share of these three government companies in India’s petroleum products market is about 90 percent, in which the share of IOCL alone is about 40%, BPCL’s 30% and HPCL’s 20%. Now under this new arrangement of RBI, these companies will be able to fulfill their daily dollar needs through designated and designated banks. This will reduce the unexpected demand for dollars in the open market, which can have a direct positive impact on the stability of the Indian rupee.

Will the fall of rupee be completely controlled?

This step of RBI is certainly an important initiative towards providing a strong security cover to the rupee, but economic experts believe that this cannot guarantee a complete stop to the fluctuations in the rupee’s movement. The value of the rupee also depends on many other global and economic factors, such as crude oil prices in the international market, activities of foreign institutional investors (FIIs), strength of the dollar index globally and the country’s trade deficit. If crude oil prices remain very high in the coming days, there may continue to be some impact on the country’s overall dollar demand. However, this intervention of RBI will prove to be very helpful in smoothening the supply of dollars in the market and preventing the situation of panic.