India’s financial sector stability risks remain contained, but recurring external shocks could spill over and affect the macroeconomic outlook, the Reserve Bank of India (RBI) said in its Financial Stability Report (FSR) released on Tuesday. However, the central bank asserted that strong fundamentals provide “ample buffers” to withstand potential disruptions. The Indian economy remains vulnerable to energy price shocks and supply chain disruptions, but the financial system’s resilience is supported by strong balance sheets of banks and non-bank financial companies (NBFCs), the report said.