RBI directs oil firms to buy dollar from single PSU bank

In the current scenario of continuous down slide of the rupee against the dollar, the Reserve Bank of India, in a bid to cub this volatility, has ordered state-owned oil companies to purchase their dollar requirement from a single public sector bank for every daily transaction. State oil refiners, who are the biggest buyers of dollars, agreed to implement the RBI order with immediate effect.

The RBI issued orders to Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Mangalore Refinery to stop seeking quotes from several banks for their $8-8.5 billion of monthly transactional requirement of U.S. dollar.

Why RBI doesn’t want oil firms to seek multiple quotes for their dollar requirements?

As felt by the RBI, Oil firms seeking multiple quotes for their dollar requirement adds to speculation on demand for the dollar and volatility in the local unit. The RBI has, therefore, asked oil firms to buy dollars from a single bank at their published reference rate.

Month: Categories: Business, Economy & Banking

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India, Maldives and Sri Lanka ink Indian Ocean security agreement

India, Sri Lanka and the Maldives have signed a tripartite pact on maritime cooperation to secure sea routes in the Indian Ocean region. The three nations will share capacities and information to address threats to maritime security — such as piracy, terrorism and gunrunning —in the Indian Ocean and to pursue sustainable development of maritime environment. The agreement was signed at a meeting on Trilateral Cooperation on Maritime Security held in Colombo, Sri Lanka.

Month: Categories: Governance & Politics

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