RBI: India's Financial System Robust, Defies Global Uncertainty

• RBI's December 2025 Financial Stability Report (FSR) confirms India's financial system is resilient and stable despite global economic uncertainty and market volatility.
• Global economy shows resilience but faces elevated risks like high public debt, financial market corrections, and vulnerabilities from non-bank intermediaries and stablecoins.
• Indian economy grows healthily, supported by strong domestic demand, benign inflation, and prudent macroeconomic policies.
• Scheduled Commercial Banks (SCBs) maintain sound health with strong capital, liquidity, improved asset quality, and robust profitability, passing macro stress tests.
• NBFCs and the insurance sector also demonstrate resilience with adequate capital buffers, stable earnings, and solvency ratios above prescribed thresholds.

Why It Matters: RBI's FSR confirms India's financial system is robust and stable, effectively navigating global economic uncertainties.