RBI's ₹76.3 Trillion Balance Sheet: What It Means for India’s Economy
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RBI’s Risk Buffer Strategy Signals Long-Term Financial Resilience In a recent report, ICICI Bank highlighted that the Reserve Bank of India’s (RBI) decision to maintain higher risk buffers will significantly strengthen its balance sheet while providing a stable foundation for India's macroeconomic outlook . This comes at a time when global oil prices are anticipated to stay benign, offering additional support to India’s inflation and fiscal management efforts. According to the report, the RBI’s robust risk buffers not only enhance its financial resilience but also act as a macroeconomic tailwind . ICICI Bank noted: “We believe higher risk buffer by RBI strengthens its balance sheet and provides a tailwind for India’s macroeconomic fundamentals when oil prices too are expected to be benign.” RBI’s Balance Sheet Expands at a Slower Pace Than GDP Growth The RBI’s balance sheet grew to ₹76.3 trillion in FY25, marking an 8.2% increase from the previous fiscal year. How...