RBI's Report on Currency and Finance 2023-24 focuses on 'Climate Change and the Economy'. Published in December 2023, it examines climate risks to India's financial system, transition pathways to net-zero emissions, and policy frameworks for climate finance. The report analyzes India's climate vulnerabilities, sectoral impacts on agriculture and manufacturing, and recommends green finance mechanisms including green bonds, climate stress testing for banks, and carbon pricing frameworks for sustainable economic transformation.

This flagship annual report represents RBI's comprehensive analysis of climate change as a systemic risk to India's economy and financial stability. Unlike previous editions focusing on traditional monetary themes, this report positions climate change as a central banking concern requiring proactive policy intervention. The report examines how extreme weather events, rising temperatures, and monsoon irregularities threaten agricultural productivity, manufacturing output, and financial sector stability. It emphasizes the dual challenge of mitigation (reducing emissions) and adaptation (building resilience). Key recommendations include mandatory climate risk disclosures for banks, development of green taxonomy for sustainable investments, enhanced climate stress testing protocols, and integration of climate considerations into monetary policy frameworks. The report also highlights India's renewable energy transition progress while identifying financing gaps for achieving net-zero targets. For financial institutions, it outlines climate risk assessment methodologies and suggests regulatory frameworks for green finance products. This positions RBI as a climate-conscious central bank aligning with global trends in sustainable central banking.