RBI Bulletin – September 2026
Issuing Authority: Reserve Bank of India
Reference: Press Release 2026-2027/1196
Date: 25 September 2026
Macroeconomic Outlook
The Bulletin notes that the Indian economy recorded robust growth of 7.8 per cent in the first quarter of FY 2026‑27, despite heightened geopolitical tensions in West Asia and rising global energy prices. High‑frequency indicators through August reinforced this resilience. Merchandise trade deficit narrowed, supported by strong export growth, while headline inflation edged up to 4.8 per cent in August, driven primarily by the food‑beverages group together with a pickup in fuel and core components.
Policy Rates and Liquidity
Systemic liquidity surplus expanded markedly, attributed to inflows into FCNR(B) deposits. The RBI highlighted that this surplus reflects ample liquidity conditions in the banking system.
Banking and Credit
Since FY 2023, bank credit growth has outpaced aggregate deposit growth, pushing the credit‑deposit (CD) ratio above 80 per cent by end‑March 2026. The article by Saurabh Ghosh, Prabhat Kumar, Madhuresh Kumar and Monica argues that, in a modern monetary system, deposits are created concurrently with lending, and therefore the CD ratio alone may not be a reliable gauge of funding vulnerability. They point out that profitability considerations, inter‑bank mobility of deposits and prudential regulation align credit growth with underlying economic conditions. The recent rise in the CD ratio coincides with a growing economy, sound banking fundamentals, higher low‑cost borrowings, increased capital, and asset‑side composition changes that have supported credit flow.
External Sector and Currency
The external sector benefited from a moderate current‑account deficit in Q1 2026‑27 and strong foreign direct investment (FDI) inflows. Foreign exchange reserves reached an all‑time high, underscoring the resilience of the external balance.
Capital Markets and Flows
Robust FDI flows were highlighted as a supportive factor for the external sector, contributing to the record‑high foreign exchange reserves.
Financial Stability and Inclusion
The authors conclude that the high CD ratio reflects liability‑side adjustments such as cheaper borrowings and higher capital, rather than systemic stress, indicating that the banking system remains sound and capable of sustaining credit expansion.
Regulatory and Policy Measures
No specific new regulatory measures were announced in this Bulletin; the discussion focused on interpreting existing monetary and prudential frameworks in the context of observed macro‑economic and banking trends.
Overall, the September 2026 RBI Bulletin underscores strong economic growth, manageable inflation, ample liquidity, a high but context‑dependent credit‑deposit ratio, and a robust external sector with record foreign exchange reserves.