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Indian financial system holds firm as global risks rise: Guv

Financial Express Ahmedabad

|

January 01, 2026

RBI UNVEILS FINANCIAL STABILITY REPORT

- FE BUREAU

AMID A VOLATILE and unfavourable external environment, the Indian economy remains a bright spot as strong domestic demand, benign inflation, and prudent macroeconomic policies continue to support growth, Reserve Bank of India Governor Sanjay Malhotra said on Wednesday.

“Maintaining financial stability and strengthening the financial system remain our north star,’ Malhotra said in his foreword to the December 2025 Financial Stability Report.

India’s financial system also remains stable, aided by strong balance sheets, easy financial conditions, and low market volatility. Even so, geopolitical and trade-related uncertainties pose near-term risks, said Malhotra.

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