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The Reserve Bank of India (RBI) released its 25th Financial Stability Report (FSR) on June 28, 2023. The report assessed the state of the Indian financial system and identified the key risks to its stability. The report found that the Indian financial system is broadly stable, but there are some risks that need to be monitored. These risks include: The rising debt levels of the corporate sector and some retail sector like credit cards which are unsecured. The increasing interconnectedness of the financial system. The potential for a sharp correction in asset prices due to global recession in the coming months The report also noted that the RBI is taking steps to mitigate these risks. These steps include: Raising the capital requirements for banks. Strengthening the regulation of non-banking financial companies. Increasing the resilience of the financial system to shocks by doing Stress tests at periodic intervals. Here are some of the key highlights of the report: The gross non-perform...

                                GDP growth projections by Global Institutions of Advanced Economies and Emerging Market Economies including India are given in Table 1 herein below: Table 1: The above chart indicates that the GDP growth of Indian economy in Calendar year 2023 has  been revised upwards by OECD from 5.7% to 6% and downwards by World Bank from 6.6% in Jan 2023 to 6.3% in June 2023. The convergence is between 6-6.3% with RBI and Department of Economic Affairs of Ministry of Finance are projecting 6.5% growth in FY2024 with risks evenly balanced.IMF is projecting at below 6% .However all these forecasts are showing slowdown from the growth attained in the last two fiscal years at 9.1% in FY22 and 7.2% in FY23.  Table 2: Key Fiscal Indicators (as a  per cent of GDP)    Indicator 2021-22 2022-23 2023-24 Actuals ...