BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Prompt Council Action
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Prompt Corrective Agenda
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Prompt Corrective Action
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Private Corrective Action
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Detailed explanation-1: -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-2: -PCA is a framework under which banks with weak financial metrics are put under watch by the RBI. The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for banks that become undercapitalised due to poor asset quality, or vulnerable due to loss of profitability.
Detailed explanation-3: -The process or mechanism under which such ac tions are taken is known as Prompt Corrective Action, or PCA.