RBI Governor Sanjay Malhotra’s speech at the Kautilya Economic Conclave listed five risks to the global financial system. Here is what each one means in plain terms.

First, AI-related valuation excesses. Stock prices of AI companies have soared. If they fall sharply, global markets could swing, but Malhotra said money could then flow into India.

Second, elevated global debt. Governments and companies owe record sums. Higher borrowing costs squeeze budgets and can slow growth everywhere.

Third, leverage in non-bank finance. Lenders outside traditional banks have borrowed heavily. If markets turn, their losses can spread quickly.

Fourth, private credit exposures. Loans made privately, outside public markets, are harder to track. Hidden losses here can surprise investors.

Fifth, cyber threats. Attacks on banks and payment systems are rising, and AI makes them more sophisticated.

Malhotra stressed he sees no imminent crisis. For Indian savers, his message was reassuring: strong bank balance sheets and sound economic fundamentals give India a cushion against global shocks.