RBI orders banks tighten scrutiny of $1 billion overseas transfers
Business
The Reserve Bank of India (RBI) just made it tougher for companies sending over $1 billion abroad.
As of last week, banks must collect detailed information on these big overseas deals and report back to the RBI.
It's all about keeping the rupee steady and the economy safe.
Banks to perform full background checks
Banks must do a full background check before clearing these massive investments.
That means looking at a company's finances, past overseas deals, how the investment fits its business, and any risks like money moving out of India.
The RBI also wants banks to see if these deals help with things like market access, technology-IP transfer to India, or boosting exports, basically making sure only smart investments get through.