New Delhi, Jan. 22 -- The policy focus on maintaining a balance between consumer protection, innovation, and a prudent regulatory approach will help support long-term economic growth in India, according to a report by the Reserve Bank of India (RBI).

According to the RBI, the latest findings of the financial structure of India have reaffirmed the strength of the financial system. The stress test results showed that both banks and non-banking financial companies (NBFCs) are capable of withstanding losses under adverse scenarios, while maintaining capital levels well above the regulatory minimum.

The RBI report stated that going forward, a policy approach that carefully balances innovation and stability, along with consumer protection and...