RBI tightens scrutiny of large outbound investment
Summary
RBI sent banks an ODI due-diligence checklist so they weigh recovery paths and existing debt for large overseas investments, seen as a move to defend the rupee, down over 5% this year.
Key points
- Applies to USD 1bn+ or over 4× net worth
- Outbound ODI rose from about USD 11bn to over USD 30bn in five years
- Effective date not stated (to be confirmed)
For Korean companiesIt covers Indian companies, with no stated impact on Korean-owned entities; experts expect longer approvals for large cross-border deals.