The Reserve Bank of India's December Financial Stability Report (FSR) indicates the Indian financial system is resilient, supported by strong domestic demand and prudent policies. While global economic resilience is noted, risks persist from elevated uncertainty, high debt, and potential market corrections. Global financial markets show underlying vulnerabilities despite surface strength. The report highlights sound health for scheduled commercial banks with strong buffers, improved asset quality, and robust profitability, though near-term external risks remain.