New Delhi, Jan. 1 -- The Reserve Bank of India (RBI) said India's economy and financial system remain resilient despite heightened global uncertainties, elevated asset valuations, and rising geopolitical risks, according to the Financial Stability Report (FSR), December 2025.
The report noted that global growth has shown greater resilience than anticipated, supported by fiscal measures, front-loaded trade, and strong investment in artificial intelligence (AI).
However, it cautioned that risks to global financial stability remain elevated due to high public debt, stretched asset prices, growing interconnectedness of non-bank financial intermediaries, and the rapid expansion of private credit and stablecoins.
On the domestic front, the RBI...