India’s central bank is reportedly tightening scrutiny of large overseas investments by domestic companies as it seeks to contain capital outflows amid pressure on the rupee.

The Reserve Bank of India issued a standardized checklist to major banks last week, requiring detailed information on overseas direct investments exceeding $1 billion and transactions above the regulatory limit of four times an investing company’s net worth, the Economic Times reported, citing two unidentified people familiar with the matter.

The initiative comes as the RBI steps up efforts to defend the local currency, which has tumbled more than 5% this year amid persistent dollar demand and capital outflows. The central bank has already tightened rules on corporate currency hedging and sought to curb dollar purchases by importers. Closer scrutiny of overseas investments adds to those efforts, though the RBI hasn’t imposed new restrictions on such investments.

Under the RBI’s checklist, banks must independently assess overseas asset valuations, including acquisition premiums and share-swap ratios, rather than simply rely on valuation reports, the Economic Times reported. They must also examine the investing company’s earnings quality, past overseas investments, existing commitments, and ability to withstand financial shocks, the newspaper reported. The RBI did not immediately respond to a request for comment from Bloomberg.