MUMBAI: India’s financial system has become more robust and diverse since 2017, a five-yearly report that is is part of the Financial System Assessment Program conducted jointly by the IMF and the World Bank showed.
The IMF recently released the latest India assessment report where it said non-bank lenders are better capitalized, allowing them to weather economic shocks while maintaining moderate lending.
The IMF acknowledged regulatory improvements by the RBI, including stricter oversight of NBFCs through a scale-based framework and liquidity coverage requirements. Public digital infrastructure has broadened financial access, though stronger legal and tax frameworks are needed to sustain this progress. The insurance sector remains stable, yet, climate change and cybersecurity risks loom, necessitating stronger risk management.
