CURRENT 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: -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.

Detailed explanation-4: -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.