Mumbai, Dec. 31 -- Although the Indian economy remains resilient, with strong growth momentum, the Reserve Bank of India (RBI) on Wednesday flagged a cluster of risks that could disrupt financial stability.

External uncertainties, including further escalation in geopolitical and trade tensions and widening geoeconomic fragmentation, were the major risks highlighted by the central bank in its Financial Stability Report.

"They could lead to higher volatility in exchange rate, weaker trade, lower corporate earnings and muted foreign direct investments," RBI said.

A strong depreciation in the rupee-it had started 2025 at 85.65 levels and slid by over 6% over the year-made it the worst-performing currency in Asia, according to data from Blo...