RBI takes “Prompt Corrective Action” when a bank is faced to __:
[A]Market Risk
[B]Credit Risk
[C]Liquidity Risk
[D]Low Capital Adequacy

Low Capital Adequacy
Prompt Corrective Action is a system of RBI under which it can initiate a corrective action in case of a bank which is found to be having low capital adequacy or high Non- performing Assets.