The Reserve Bank of India is reported to be tightening its scrutiny of large overseas investments by Indian companies, according to Bloomberg on 20 October 2026. The report cites the Economic Times and two unnamed people. The RBI has not confirmed it and did not respond to a request for comment, so the details below are unverified.
What the checklist reportedly covers
Last week, the report says, the RBI gave major banks a standard checklist for overseas direct investment (ODI) above $1 billion and for transactions above four times the investing company's net worth, which is the regulatory limit. Banks are reportedly to make their own assessment of overseas asset valuations, including acquisition premiums and share-swap ratios, rather than rely on valuation reports. They are also to look at the investor's earnings quality, past overseas investments, existing commitments and ability to absorb financial shocks. The report says the RBI has not imposed new restrictions on overseas investment.
The numbers behind it
RBI data cited in the report show ODI of $26.7 billion in the year ended March 2026, nearly double the figure two years earlier, and about $22.7 billion in the five months from April to August 2026. ODI covers equity, debt and guarantees by Indian entities, and applies when an investment gives control of a foreign entity or more than 10% of its paid-up equity. The largest 2026 deal the report cites is Coforge's acquisition of Encora at an enterprise value of $2.35 billion.
The rupee
The report says the rupee has fallen more than 5% this year, without giving a rate, and that the RBI has already tightened rules on corporate currency hedging and tried to limit dollar purchases by importers.
Key numbers
- ODI, year to March 2026: $26.7 billion (Nearly double two years earlier)
- ODI, April to August 2026: About $22.7 billion (Five months)
- Checklist threshold: Above $1 billion (Reported, unconfirmed)
- Rupee this year: Down over 5% (No rate given)
What boards and CFOs should note
Three points stand out. First, companies planning large overseas acquisitions may face more questions from their banks on valuation and financial strength. Second, the report describes a checklist, not a new rule. Third, none of it is confirmed by the RBI.
Source: Business Standard (Bloomberg), 20 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
