BANKING AFFAIRS

Detailed explanation-1: -SPOTLIGHT. The bank regulator had three state-owned banks under its PCA framework. Indian Overseas Bank and UCO Bank were removed from the watchlist in 2021. RBI had revised the PCA framework for Scheduled Commercial Banks (SCBs), with changes being effective from January 1, 2022.

Detailed explanation-2: -RBI had placed 11 state-run banks – Allahabad Bank, United Bank, Corporation Bank, IDBI Bank, Uco Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Dena Bank and Bank of Maharashtra – under PCA framework after they breached the risk thresholds.

Detailed explanation-3: -Prompt Corrective Action Framework – Central Bank of India Taking all the above into consideration, it has been decided that Central Bank of India is taken out of the PCA restrictions subject to certain conditions and continuous monitoring.

Detailed explanation-4: -HDFC Bank is a private sector bank in India.