Reserve Bank of India has set up a special forex purchase window for state-owned
refiners to route their daily dollar buys for crude and product imports through
State Bank of India, people familiar said. The arrangement could cut spot dollar
demand by about $10bn a month, relieving downward pressure on the rupee. The RBI
said in a Saturday statement that under the mechanism it will sell dollars to
state firms via designated banks. Previously Indian Oil, Bharat Petroleum and
Hindustan Petroleum sourced dollars across multiple banks, adding pressure on
the currency; the three refiners have combined crude processing capacity of over
3.0 mln barrels per day and also import other petroleum products, mainly LPG.
