RBI · Reserve Bank of India ·

RBI announces special window for Public Sector Oil Marketing Companies to meet dollar requirements

Distilled Policy Brief

  • The Reserve Bank of India has decided to open a special window to supply the entire daily dollar requirements of three public sector oil marketing companies (OMCs).
  • The designated OMCs under this facility are Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited.

🎯 Prelims High-Yield Examination Points

RBI's direct forex intervention facilities for public sector OMCs during exchange market volatility.

⚖️ Mains Analytical & Syllabus Linkages

Central bank forex liquidity management mechanisms to insulate domestic currency from crude oil import price shocks.

🎯 UPSC Prelims Practice Drill

Economy

With reference to the special window announced by the Reserve Bank of India (RBI) for Public Sector Oil Marketing Companies (OMCs) to meet dollar requirements, consider the following statements: 1. The facility is designed to supply the entire daily dollar requirements of Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited. 2. Under this facility, the RBI sells USD directly to the public sector OMCs without routing the transactions through designated banks. Which of the statements given above is/are correct?

  • [A] 1 only
  • [B] 2 only
  • [C] Both 1 and 2
  • [D] Neither 1 nor 2
▶ Reveal Official Answer & Analytical Explanation
✓ Correct Option: [A] 1 only

Statement 1 is correct as the RBI special window is opened to supply the entire daily dollar requirements of the three designated public sector OMCs (IOCL, HPCL, and BPCL). Statement 2 is incorrect because the Reserve Bank undertakes the sale of USD to these public sector OMCs through designated bank/s, rather than bypassing banks entirely.

Tark High-Yield Question Bank ⚡ Practice Full Test in Testing Arena ↗

🏛️ Historical Twin PYQ Anchor (2021)

UPSC Prelims 2021

Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.

Forensic Anchor: Cabinet Allocation of Business Rules & NCAP Framework
Examiner Trap Takeaway: UPSC swapped Central Pollution Control Board role with State Pollution Control Boards for state-level monitoring.

📚 Static Syllabus & Constitutional Linkages

Managed Float Exchange Rate Regime: Macroeconomics (NCERT Class 12) - Central bank interventions in foreign exchange markets to smooth volatility without pegging the exchange rate explicitly.