India, June 30 -- The Reserve Bank of India (RBI) released its bi-annual Financial Stability Report on Tuesday, where it flagged exchange rate volatility, energy price shocks and inflationary pressures due to the ongoing West Asia crisis.

India's financial stability remains resilient despite risks to global financial stability amid the ongoing conflict, the report said. However, the economy remains exposed to energy price shocks and supply-chain disruptions because of its dependence on imported oil.

It also added that the West Asia conflict and consequent increase in global uncertainty have impacted emerging market economies like India through the financial channel.

The report said that Indian financial sector remained resilient amid a...