New Delhi, June 30 -- The Reserve Bank of India (RBI), in its Financial Stability Report for June, released on Monday, 30 June 2025, said that the rising public debt in the Indian economy, elevated asset valuations, and geopolitical tensions can potentially lead to fresh market shocks.

The central bank highlighted the volatility in the Indian financial markets with a special focus on the government bond markets due to the shift in policy and the changing geopolitical environment.

"Financial markets remain volatile, especially core government bond markets, driven by shifting policy and geopolitical environment. Alongside, existing vulnerabilities such as soaring public debt levels and elevated asset valuations have the potential to ampli...