RBI told state refiners, reduce dollar buying in the spot market, control the sharp fall in rupee

reserve Bank of India has ensured that $9 billion is made available to the overseas branches of some Indian BankSources with direct knowledge of the matter said the country’s three state-run refiners to tap, adding that the funds are available at market rates.

“For the last 2-3 days, RBI has been asking companies to tap this credit line,” said one of the sources.

Credit line available only for Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which together control more than half Indiahas a refining capacity of 5 million barrels per day.

Monthly oil purchases from overseas account for about 30% Indiatotal imports of

BankStates that participate in the credit-line scheme include Bank of IndiaCanara Bank, Bank of Baroda, Axis Bank and Punjab National Banksaid one of the sources. The greenback’s boom has sent a sharp rise in interest rates from the US Federal Reserve. Indian currency has fallen 10% so far this year. India‘s Central Bank It has also intervened in dollar sales to help boost the currency.

The sources declined to be identified as the discussions were private. The RBI, state-run refiners and lenders did not respond to requests for comment.

The rupee hit a one-day high of 81.16 per dollar after the Reuters report, up from 81.54 before the report. – Reuters

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