RBI Steps Include Higher MSF Rate and Direct Dollar Window for Oil Marketers

The Reserve Bank of India has unveiled several tactical moves to support the currency.

First, the RBI opened a dedicated dollar‑supply window for government‑owned oil marketing firms, directing roughly $10‑12 billion each month away from the open‑spot market.

Second, the cash reserve ratio (CRR) for banks has been raised to 99%, and an open‑market operation of ₹25,000 crore has been announced.

Third, the central bank increased the ceiling of the Marginal Standing Facility, which is expected to tighten rupee liquidity and boost its price in the short run.

Additional steps include stricter documentation for foreign‑exchange hedging and a ban on re‑booking cancelled FX‑derivative contracts.