New Delhi, Jan. 1 -- The Reserve Bank of India (RBI) on Wednesday released the December 2025 edition of its half-yearly Financial Stability Report (FSR), assessing the resilience of India's financial system against a backdrop of global economic uncertainty.

The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC), which includes all major financial sector regulators.

Global Environment: Resilience With Rising Vulnerabilities

The FSR noted that the global economy has shown resilience, supported by fiscal measures, front-loaded trade activity and strong investment linked to artificial intelligence. However, it cautioned that downside risks persist due to elevated uncerta...