- The Reserve Bank of India (RBI) removed 3 banks (Allahabad Bank, Corporation Bank & Dhanlaxmi Bank) out of the Prompt Corrective Action (PCA) framework allowing them to resume their normal lending activities.
- The Board for Financial Supervision (BFS) reviewed the performance of banks under PCA and noted that the government has infused fresh capital into various banks including some of the banks currently under the PCA framework.
- The Reserve Bank of India has specified certain regulatory trigger points as part of the PCA framework in terms of three parameters:-
- Capital to risk-weighted assets ratio (CRAR),
- Net non-performing assets (NPA) and
- Return on Assets (ROA), for initiation of specific structured and discretionary actions.
Published On : 28 Feb 2019
Current Affair
