The Reserve Bank of India has stepped up scrutiny of large overseas investments by Indian companies as the rupee comes under pressure, according to reports by Bloomberg via The Hindu BusinessLine and the Economic Times, also reported by IndustryWired on October 20, 2026.

The RBI issued a standardised checklist to major banks last week requiring detailed information on overseas direct investments exceeding $1 billion (yaani about Rs 9,700 crore at roughly Rs 97 per dollar) and on transactions above the regulatory limit of four times an investing company's net worth.

Banks must independently assess overseas asset valuations, including acquisition premiums and share-swap ratios, rather than simply relying on valuation reports. They must also examine the investing company's earnings quality, past overseas investments, existing commitments and ability to withstand financial shocks.

The reports say the rupee has tumbled more than 5% this year amid persistent dollar demand and capital outflows, and the RBI has already tightened rules on corporate currency hedging and sought to curb dollar purchases by importers.

Crucially, the reports stress this is closer scrutiny, not a ban: the RBI has not imposed new restrictions on overseas investments, and it did not immediately respond to a request for comment. Companies planning very large overseas deals should expect more questions and paperwork from their banks.

Sources: Bloomberg via The Hindu BusinessLine, Economic Times (as reported), IndustryWired — October 20, 2026.