Critical Analysis of RBI’s Financial Stability Report 2025
- ABC Research
- July 2, 2025

The Banking Laws (Amendment) Act, 2025 brings long-needed updates to India’s banking laws—modernizing thresholds, improving audit standards, and aligning cooperative banks with constitutional norms. But the reforms still lack the institutional backing and enforcement strength seen in global counterparts.
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SEBI has renewed the recognition of MCX Clearing Corporation Limited for three more years, reinforcing its critical role in India’s commodity derivatives market. This renewal underscores MCX’s leadership in market stability, risk management, and investor confidence, boosting both domestic growth and foreign investment.
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India’s latest banking data paints a picture of a financially stable and liquid economy. Deposits are rising, credit is expanding slowly, and banks are investing safely while relying less on RBI support. This five-year trend highlights strong fundamentals and cautious optimism within the Indian banking system.
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RBI’s July 2025 SDL auction shows Indian states borrowing heavily—not for development, but to repay maturing debt. As rollover dependency grows, fiscal red flags emerge across high-debt states like Punjab, Kerala, and West Bengal.
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