<h1>Depositor protection: banks must strengthen governance, risk management and digital resilience to preserve financial stability.</h1> Global macroeconomic shocks have tightened external funding and raised inflationary pressures; India's stronger fundamentals, resilient banking system and adequate reserves have limited spillovers, with the Reserve Bank supplying forex liquidity to ensure orderly exchange rate evolution. Banks must prioritise depositor protection through robust governance, risk management, capital and liquidity practices that exceed regulatory minima. The banking future centres on digitisation, open banking, fintech collaboration, cybersecurity, financial inclusion and climate related risk management, requiring strategic investment, enhanced consumer protection and regulatory support for sustainable innovation.