CURRENT AFFAIRS

Detailed explanation-1: -5. The contents of the circular may be brought to the attention of the bank’s Board of Directors. A. Capital, Asset Quality and Leverage will be the key areas for monitoring in the revised framework.

Detailed explanation-2: -In 2021, the RBI revised the PCA Framework for scheduled commercial banks, round capital, asset quality and leverage will be key areas, earlier asset quality and profitability were the key areas for monitoring under framework.

Detailed explanation-3: -For CICs, Capital, Leverage and Asset Quality would be the key areas for monitoring in PCA Framework. C. For NBFCs-D and NBFCs-ND, indicators to be tracked would be Capital to Risk Weighted Assets Ratio (CRAR), Tier I Capital Ratio and Net NPA Ratio (NNPA).

Detailed explanation-4: -capital adequacy, asset quality and profitability. Certain trigger points have been determined for the PCA framework under the three parameters taking into account the practicability of implementation of certain measures in the Indian context.

Detailed explanation-5: -Capital, Asset Quality and Capital-To-Risk Weighted Assets Ratio(CRAR), NPA ratio, Tier I Leverage Ratio, will be the key areas for monitoring in the revised framework.