India's financial sector is facing many worrisome challenges at this time. In this, a high level of non-executed assets (NPA), a slow process of reforming the corporate banknote sheet, is examining the flexibility of the banking system of the country, which is obstructing the country's progress according to the International Monetary Fund ( IMF). 

After discussions with the Executive Board of the Money Laundering Committee on 'Assessment of the Stability of India's Financial System' (FSSA), he said in a report that the major banks of India look flexible but there are many considerable weaknesses in this system.   

Mudra Kosh said that there are many challenges before financial sector and economic growth has slowed down recently. Higher levels of NPAs, slowing down in corporate 'balance sheets' are examining the flexibility of banks and are hindering investment and growth in the country. Earlier, for the last time, the FSSA was done in 2011 in India.   

After its Executive Board discussed the Financial System Stability Assessment (FSSA) of India, the IMF in a report said India's key banks appear resilient, but the system is subject to considerable vulnerabilities.   

"The financial sector is facing considerable challenges, and economic growth has recently slowed down. High non- performing assets (NPAs) and slow deleveraging and repair of corporate balance sheets are testing the resilience of the banking system, and holding back investment and growth," it said. 

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