Prompt Corrective Action Current Affairs, GK & News

Prompt Corrective Action

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. These are called Trigger Points. RBI takes such action when Capital Adequacy Ratio goes down to less than 9% and Non-Performing ..

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Prompt Corrective Action (PCA) Framework for NBFCs- Things to Know

Reserve Bank of India (RBI) has brought non-banking finance companies (NBFCs) under the ambit of prompt corrective action (PCA) framework. Key Points Under the PCA framework, NBFCs will face restrictions when parameters such as capital adequacy ratio, non-performing assets, and Tier 1 capital will fall below the stipulated levels. Banks are already covered under the ..

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RBI’s Revised PCA framework- Things to Know

Reserve Bank of India (RBI) modified its prompt corrective action (PCA) framework on November 3, 2021 to exclude the profitability parameter from its triggers list. Key Points In its 2017 framework, capital, asset quality & profitability were the key areas to monitor. In recent modification, round capital, asset quality & leverage will be key areas. ..

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IOB out of RBI PCA Framework

Reserve Bank of India (RBI) has moved out the public sector lender Indian Overseas Bank (IOB) from Prompt Corrective Action (PCA) framework after its financial and credit profile improved. Key Points This decision provides lender more freedom to lend, especially to corporations and grow the network. IOB was placed under PCA in October 2015 because of high Net-Performing ..

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LIC-owned IDBI Bank removed from PCA framework

The Reserve Bank of India (RBI) has removed IDBI Bank from the Prompt Corrective Action (PCA) framework which is the enhanced regulatory supervision of RBI on March 10, 2021. The bank was removed from the framework after four years as a result of its improved financial performance. Background Central bank had enlisted the IDBI Bank ..

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RBI rejects Lakshmi Vilas Bank-Indiabulls Housing Finance merger plan

The Reserve Bank of India (RBI) rejected the merger proposal between Lakshmi Vilas Bank and mortgage lender Indiabulls Housing Finance Limited. If the RBI would have approved the move, this would have been the first-ever incident where a non-bank lender would have merged with a bank in the country. Poor Performance of banks: Both Lakshmi ..

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NITI Aayog hosts Conference on Future of Indian Banking and role of technology Tomorrow

The think tank Niti Ayog had hosted the conference on Future of Indian Banking and role of technology Tomorrow in association with the Foundation for Economic Growth and Welfare (EGROW Foundation). The conference was inaugurated by Dr Rajiv Kumar, Vice Chairman, NITI Aayog. The speakers in the event included Rajiv Kumar, Secretary, Department of Financial Services, ..

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