RBI opens special dollar window for Indian Oil, Bharat Petroleum and Hindustan Petroleum
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Currency management and liquidity provision for PSUs: a GS3 Economy and Monetary Policy case study.
Why in news
The RBI opened a special dollar window for Indian Oil, Bharat Petroleum, and Hindustan Petroleum to manage currency requirements amidst high overseas yields and hedging costs.
Background
The RBI established a special dollar window specifically for three Public Sector Undertakings (PSUs): Indian Oil, Bharat Petroleum, and Hindustan Petroleum. This move follows observations by Rockfort Fincap LLP regarding narrowed borrowing options for Indian companies due to high overseas yields.
Facts for Prelims
- BodyRBI: The Reserve Bank of India manages the special dollar window for currency requirements.
- FactBank lending rates mentioned include 8% EBLR plus 200-300 basis points.
- FactThe special dollar window is specifically designated for Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
Prelims practice question
Which specific lending rate benchmark is mentioned in the context of the bank lending rates?
- (a)Repo Rate
- (b)MSF
- (c)MCLR
- (d)EBLR
Show answer
Answer: (d) EBLR — The note mentions bank lending rates include 8% EBLR plus 200-300 basis points.
For Mains
Q. Analyze the role of the Reserve Bank of India in managing currency liquidity and credit availability for energy-intensive public sector undertakings in a high-yield global environment.
Dimensions to cover in your answer
- Liquidity management: Balancing domestic lending rates with the need for affordable external currency for energy giants
- Market distortion: Potential impact of special windows on the competitive landscape of corporate bond markets
Keywords: Currency management · Liquidity provision · External borrowing · Monetary policy · Public Sector Undertakings
More Economy notes
- India's richest 10% earn $10 daily, less than poorest 10% in four nations · 12 October 2026
- Telangana to reconsider ₹8,500 monthly pass fees for Hyderabad Metro and TGSRTC services · 12 October 2026
- Cochin Shipyard to commission Mangrol with 80 per cent indigenous content for Indian Navy · 12 October 2026
- RBI introduces measures to stabilize rupee as it falls near 96.96 against dollar · 12 October 2026
- Mutual funds hit record 11.7% equity holdings as FPI assets fall below 14% · 12 October 2026
- Indian AI exposure rose since 2012 with routine automation pressure rising by 2025 · 11 October 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.