- The Reserve Bank of India (RBI) has opened a special dollar window to assist Public Sector Undertaking (PSU) oil marketing companies in meeting their daily foreign exchange requirements. - This intervention aims to ease pressure on the domestic foreign exchange market amid rising global crude oil prices, which typically elevate dollar demand. - By directly catering to bulk dollar buyers outside the open market, the central bank helps mitigate sharp volatility in the rupee-dollar exchange rate and preserves forex reserves stability. - Such measures reflect the proactive role of central banks in managing external sector shocks and macroeconomic stability during geopolitical or energy supply disruptions. - **Reserve Bank of India:** India’s central banking institution, which controls the monetary policy of the Indian rupee, regulates the banking system, and manages foreign exchange reserves to ensure financial stability. - **Public Sector Undertakings:** State-owned enterprises in India where the majority stake (51% or more) is held by the central government or a state government. **Introduction** In response to rising global crude oil prices increasing the daily dollar demand of Public Sector Undertaking (PSU) oil firms, the Reserve Bank of India (RBI) has established a special dollar window. This policy action aims to minimize volatility in the foreign exchange market, protect the Indian rupee from depreciation pressure, and ensure orderly functioning of forex liquidity management. **Core Issue and Detailed Points** - The Reserve Bank of India (RBI) has opened a special dollar window to assist Public Sector Undertaking (PSU) oil marketing companies in meeting their daily foreign exchange requirements. - This intervention aims to ease pressure on the domestic foreign exchange market amid rising global crude oil prices, which typically elevate dollar demand. - By directly catering to bulk dollar buyers outside the open market, the central bank helps mitigate sharp volatility in the rupee-dollar exchange rate and preserves forex reserves stability. - Such measures reflect the proactive role of central banks in managing external sector shocks and macroeconomic stability during geopolitical or energy supply disruptions. **Key Statutory Bodies, Acts & Concepts** - **Reserve Bank of India:** India’s central banking institution, which controls the monetary policy of the Indian rupee, regulates the banking system, and manages foreign exchange reserves to ensure financial stability. - **Public Sector Undertakings:** State-owned enterprises in India where the majority stake (51% or more) is held by the central government or a state government.