The Reserve Bank of India is tightening its approval process for companies' borrowing abroad amid concerns a rise in rupee volatility may hinder their ability to repay debt, Bloomberg News reported Feb. 20, citing "a person familiar with the matter."

The central bank is taking more time to scrutinize companies' hedging practices and vet borrowers more closely. This is in preparation for any potential fallout in the financial market stemming from a rise in U.S. interest rates, the source said.

The heightened scrutiny has resulted in slower approvals of offshore debt sales in recent weeks, other sources said. Lately, they added, the central bank has also not issued loan registration numbers to some borrowers. Under official guidelines, these numbers are required before companies can raise debt abroad.

A spokesman for the central bank did not respond to email and text messages, the news outlet reported.

Overseas bond sales for Indian companies have slowed in February amid concerns over the pace of inflation and the outlook for borrowing costs in the U.S. Bloomberg added the Indian rupee is one of the worst-performing major global currencies so far in 2018.