BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Non-Banking Financial Companies
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Financial Management Institutions
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Commercial banks
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Co-operative Banks
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Detailed explanation-1: -The PCA framework is applicable only to commercial banks and not extended to co-operative banks, non-banking financial companies (NBFCs) and FMIs.
Detailed explanation-2: -Applicability – The PCA framework for NBFCs comes into effect from October 1, 2022, based on their financial position on or after March 31, 2022. The framework will apply to all deposit-taking NBFCs, excluding government companies, and all non-deposit taking NBFCs in the middle, upper and top layers.
Detailed explanation-3: -PCA framework is implemented by the RBI. 2.It is applicable only to commercial banks.
Detailed explanation-4: -PCA will apply to an NBFC on breach of the prescribed risk thresholds, and such NBFCs must take appropriate remedial steps depending on the level of the breach. The PCA framework prescribes certain mandatory actions, as well as certain discretionary actions that may be implemented by the RBI.
Detailed explanation-5: -NEW DELHI: Central Bank of India, the only public sector lender under the RBI’s prompt corrective action (PCA) framework, may see an exit from restrictions soon following an improvement in its financial health.