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‘Tighter bank-NBFC ties, external spillovers key risks’

MUMBAI: The outlook for 2026 blends domestic resilience with rising global uncertainty, according to RBI’s financial stability report (Dec 2025). While India’s macroeconomic fundamentals and banking system remain sound, the report stresses that the economy is exposed to global shocks translating into rupee pressure, and to vulnerabilities created by deeper financial linkages at home. The…

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Eyes on complex bank-NBFC linkage

Mumbai: RBI is sharpening its focus on the fault lines that run between banks and non-bank lenders, wary that tighter linkages could amplify shocks in an uncertain global environment. Its report on banking trends makes clear that interconnectedness, particularly between banks and non-banking financial companies, has moved from a peripheral concern to a core element…

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