CURRENT AFFAIRS

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: -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: -How many banks are in Prompt Corrective Action? As of January 2022, only the Indian Overseas Bank, and Central Bank of India are under the RBI’s Prompt Corrective Action framework.

Detailed explanation-4: -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.

Detailed explanation-5: -RBI Removes Central Bank of India from PCA Framework.