RBI Annual Report Charts Robust Path: Growth at 6.5%, Inflation Easing Toward 4%

Jyoti Rathi - Kolkata Bureau May 29, 2026 1,900 Views

The Reserve Bank of India has released its Annual Report for 2025-26, outlining how the central bank navigated a choppy global backdrop while keeping India on a robust growth and disinflation path. The report details RBI’s operations, balance sheet, policy stance and its assessment of growth, inflation, external sector and financial stability for the year.

The statutory annual report, tabled by the RBI’s Central Board, doubles up as a health check on the Indian economy and the central bank’s own balance sheet. It maps how policy, regulation and technology initiatives are being used to support growth while preserving macroeconomic and financial stability.

Macro Assessment And Outlook

The RBI notes that India remains among the fastest growing major economies, projecting real GDP growth around 6.5 percent for 2025-26, supported by resilient domestic demand and public capex. Headline inflation is expected to gradually move closer to the 4 percent target band, aided by softer global commodity prices and easing supply chain pressures.

RBI’s Balance Sheet And Surplus

The annual report highlights an expansion in the central bank’s balance sheet, driven by higher holdings of foreign assets, gold and domestic securities. Income growth has outpaced expenditure, allowing a higher surplus transfer to the government, strengthening fiscal buffers while maintaining adequate contingency reserves.

Digital Finance And CBDC Push

RBI flags rapid growth in digital payments, with the currency deposit ratio declining as households and firms increasingly rely on electronic modes. The stock of central bank digital currency (e-rupee) in circulation has risen sharply, and the central bank is exploring cross-border CBDC pilots to make payments faster and cheaper.

Risks And Policy Priorities

The report cautions that global uncertainties, elevated public debt in several economies, geopolitical tensions and climate shocks could inject volatility into growth and inflation trajectories. RBI reiterates that policy will remain data dependent, balancing support for growth with the need to anchor inflation expectations and safeguard financial stability.