India’s central bank has asked state-run oil refiners to scale back their spot dollar purchases, in a move aimed at easing pressure on the rupee, according to a Reuters report. 

The Reserve Bank of India (RBI) has informally advised these companies to reduce their reliance on the spot market for dollar buying and instead explore alternative arrangements such as forward contracts, the report added.

Business Today was unable to verify the development independently.

The directive comes as heavy dollar demand from oil importers — among the largest consumers of foreign exchange in India — has been weighing on the domestic currency. 

State-owned refiners, which account for a significant share of India’s crude imports, typically buy dollars from the spot market to meet their payment obligations. This concentrated demand can exacerbate volatility in the rupee, especially during periods of global uncertainty or elevated oil prices. 

As per the report, the RBI’s move is part of a broader effort to manage liquidity in the foreign exchange market and prevent sharp fluctuations in the currency. By encouraging staggered or hedged dollar purchases, the central bank aims to smooth demand and reduce sudden spikes. 

The development also reflects growing sensitivity within the RBI to external pressures, including global trade tensions and capital flow volatility, which can amplify currency swings in emerging markets like India. 

Market participants say such steps could help stabilise the rupee in the near term, particularly if global headwinds persist.

Published on: Apr 16, 2026 10:20 PM IST