RBI: India’s financial, external sectors remain strong

Nifty23, 140.5077.41. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• Despite the challenging global environment, the Indian economy recorded a solid GDP expansion in Q1: 2026-27, the article noted.
• Funds supply expansion accelerated in August on account of a rapid growth in aggregate deposits.
• The Economic Times daily newspaper is available online now.
• RBI bulletin: India's financial, external sectors continue to draw strength from resilient domestic economy.
• India's economy is showing resilience despite global uncertainties and high geopolitical tensions affecting financial markets, RBI's bulletin remarked.

Nifty23, 140.5077.41. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now.

RBI bulletin: India's financial, external sectors continue to draw strength from resilient domestic economy. PTILast Updated: Sep 25, 2026, 11: 21: 00 PM IST.

India's economy is showing resilience despite global uncertainties and high geopolitical tensions affecting financial markets, RBI's bulletin remarked. Crude oil rates have sharply climbed due to escalating conflicts in West Asia, prompting reservations over inflation. The Reserve Bank indicates a solid GDP expansion in the first quarter of 2026-27, with moderate current account deficits. While FDI inflows have reached a five-year high, credit and deposit expansion are additionally accelerating.

Though escalating geopolitical tensions and weather-related uncertainties remain key downside risks, RBI Bulletin remarked on Friday, mumbai: India's financial and external sectors continue to draw strength from a resilient domestic economy. The escalation of conflict in West Asia in September has led to a sharp growth in crude oil costs, reigniting reservations of further disruption in global supply chains and build-up of inflationary pressures, remarked the article on 'State of the Economy' published in the latest Bulletin. Besides, the rise in sovereign yields in some of the major advanced economies has put pressure on administration finances.

Despite the challenging global environment, the Indian economy recorded a solid GDP expansion in Q1: 2026-27, the article noted. "India's financial and external sectors are drawing strength from the real economy, although geopolitical tensions and weather-related uncertainties are acting as key downside risks, " it remarked. Live Events.

US' Graham Act, trade restrictions are sustained coercion; US, China, EU weaponise trade: CEA It further remarked system liquidity remained in surplus in August and surged further in the first half of September as banks tapped the Reserve Bank's Foreign currency non-resident (Bank) swap facility, before moderating afterwards in the month due to tax-related outflows. Funds supply expansion accelerated in August on account of a rapid growth in aggregate deposits. "Credit growth maintained its momentum while deposit growth picked up, " it remarked. According to the article, Indian equity markets remained subdued in August and September as geopolitical tensions and elevated bond yields weighed on investor sentiment. "The current account deficit remained moderate in Q1: 2026-27, supported by robust services exports and remittance flows, " it remarked. Foreign direct investment (FDI) flows strengthened in July with net FDI reaching its highest monthly level in five years, the article remarked, adding that net inflows under non-resident deposits rose sharply. RBI fixes H2 Ways and Means Advances limit for administration at Rs 50, 000 cr Various capital flow measures unveiled in June backed the accumulation of foreign exchange reserves. It rose to USD 765.9 billion as of September 18, 2026. By contrast, the article remarked, foreign portfolio investment (FPI) registered net outflows in September after witnessing inflows in August, on re-escalation of the West Asia crisis and rising global bond yields. On inflation, it remarked, until September 21, high-frequency data suggest a broad-based sequential rise in food rates. Though the pace of month-on-month rise moderated for rice, among cereals, rice and wheat rates continue to rise. "Rates of all major pulses, gram, tur and moong inched up over the previous month. Edible oil rates additionally registered a broad-based growth, led by mustard and palm oil, " it remarked. While potato costs recorded a month-on-month decline, among key vegetables, onion rates climbed sharply, and tomato rates inched up after two months of moderation. The central bank remarked the views expressed in the Bulletin article are those of the authors and do not represent the views of the Reserve Bank of India. Add Now!

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For now, RBI: India's financial, external sectors remain strong remains the part of the story worth watching, and further updates are likely as more details are confirmed.