Prompt Corrective Action (PCA)

  • It is a framework under which banks with weak financial metrics are put under watch by the RBI.
  • It was initiated by the RBI in 2002 to discipline banks when they report poor and risky financial performance.
  • The PCA framework deems banks as risky if they slip below certain norms on three parameters — capital ratios, asset quality and profitability.
  • PCA is intended to help alert the regulator as well as investors and depositors if a bank is heading for ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content

Already a Member? Login here

Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Be an Annual Subscriber

News Snippets