Q. Prompt Corrective Action (PCA) framework, which was seen in the news, is associated with which institution?
Answer:
RBI
Notes: The Reserve Bank has announced an extension of the Prompt Corrective Action (PCA) framework to Government NBFCs, excluding those in the Base Layer, starting from October 1, 2024.
This decision will be based on the audited financials as of March 31, 2024, or later. Once government-owned NBFCs are placed under the PCA framework, it will impose restrictions not only on dividend distribution and profit remittance but also on the infusion of equity by promoters/shareholders and reduction of leverage.