The Reserve Bank of India supports countries prioritizing the development of CBDCs to maintain financial order.
TL;DR
The Reserve Bank of India's financial stability report projects a decline in banking NPLs but rising risks for NBFCs. It highlights stablecoins as a threat to financial stability and advocates for prioritizing CBDC development to maintain order.
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[Reserve Bank of India Supports Prioritizing CBDC Development to Maintain Financial Order] According to a Reuters report, the Reserve Bank of India (RBI) released a financial stability report stating that the non-performing loan ratio in the Indian banking system is expected to fall to 1.9% in fiscal year 2026-27, down from 2.1% in September 2025. However, the risk to non-bank financial institutions (NBFCs) is rising, with their non-performing loan ratio projected to increase from 2.3% to 2.9%. The report also reiterated concerns about stablecoins, emphasizing that they pose a risk to macroeconomic financial stability and supporting the priority development of central bank digital currencies (CBDCs) to maintain financial order.