RBI requires banks to report detailed vetting of overseas investments
The Reserve Bank of India (RBI) is stepping up checks on Indian companies investing abroad, worried that some funds might be misused.
Now, banks have to collect detailed information from these companies, including how they vet their foreign partners and handle anti-money laundering and KYC processes, and send it all to the RBI.
This level of oversight wasn't really there before.
ODIs rose from $11b to $34b
Overseas Direct Investments (ODIs) have shot up from $11 billion five years ago to $34 billion in fiscal 2026.
With so much money moving across borders, the RBI wants stronger controls and clearer reporting to make sure everything lines up with India's economic and compliance standards.
Companies must complete new detailed questionnaire
Companies must fill out a new questionnaire covering things like dividends, loan payments, exports and imports, dealings with foreign subsidiaries, even details about R and D spending, energy use, employee counts, and whether their partners have real offices or just operate independently.
They also need to report any capital written off, just in case funds aren't being managed properly.