RBI may tighten approvals for offshore borrowing to avoid any defaults

India’s central bank is reviewing its process for allowing companies to raise money overseas due to concern that any increase in rupee volatility may hurt borrowers’ ability to repay debt, a person familiar with the matter said.

The Reserve Bank of India is spending more time scrutinizing companies’ hedging practices, vetting borrowers more closely to prepare for any financial-market fallout from an increase in U.S. interest rates, the person said, asking not to be named as the matter is private.

The new process is resulting in slower approvals in recent weeks for offshore debt sales, people said. The RBI hasn’t