BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Prompt
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Prove
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Public
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Price
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Detailed explanation-1: -Reserve Bank of India had introduced a Prompt Corrective Action Framework (PCA) for Scheduled Commercial Banks in 2002 and the same has been reviewed from time to time based on the experience gained and developments in the banking system.
Detailed explanation-2: -PCA is enforced by RBI when banks breach certain regulatory requirements such as return on asset, minimum capital, and quantum of non-performing assets. Banks under PCA face restrictions like dividend distribution, branch expansion, and management compensation or may require promoters to infuse capital in the bank.
Detailed explanation-3: -Prompt Corrective Action (PCA)is a framework introduced by the Reserve Bank of India in 2022. The Prompt Corrective Action framework is a structured early-intervention mechanism for banks with weak financial records due to loss of profitability or poor asset quality.
Detailed explanation-4: -Prompt Corrective Action Framework – Central Bank of India The performance of the Central Bank of India, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision.