LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Prompt corrective action not to constrain banks normal operation: RBI

 The prompt corrective action framework is intended to encourage banks to eschew certain riskier activities and focus on conserving capital so that their balance sheets can become stronger.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Prompt corrective action not to constrain banks normal operation: RBI
A man shows Rs 2000 notes in front of the Reserve Bank of India (RBI) headquarter. Photo: IANS
Written By: ZeeBiz WebTeam
Updated: Fri, Dec 22, 2017
04:01 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Amazon Pay, Paytm, PhonePe, MobiKwik, PayU and Ola Pay – 3 GAME-CHANGERS for you Amazon Pay, Paytm, PhonePe, MobiKwik, PayU and Ola Pay – 3 GAME-CHANGERS for you
No bank account needed for payments via RTGS, NEFT now; here is how you will benefit No bank account needed for payments via RTGS, NEFT now; here is how you will benefit
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy 2021: KEY HIGHLIGHTS, top 11 points by Governor Shaktikanta Das and reactions - who said what? RBI Monetary Policy 2021: KEY HIGHLIGHTS, top 11 points by Governor Shaktikanta Das and reactions - who said what?
Account holders of this bank have a good news from RBI - All you need to know Account holders of this bank have a good news from RBI - All you need to know

The Reserve Bank of India (RBI) on Friday clarified that the prompt corrective action (PCA) framework is not intended to stop banks normal operations.
 
“The PCA framework is not intended to constrain normal operations of the banks for the general public,” said the central bank.
 
The clarification comes in the wake of some misinformed communication circulated in some section of media including social media.
 
RBI statement said it has come across some misinformed communication circulating in some section of media including social media, about closure of some Public Sector Banks in the wake of their being placed under the Prompt Corrective Action (PCA) framework.
 
RBI further clarified that under its supervisory framework, uses various measures/tools to maintain sound financial health of banks.
 
“PCA objective is to facilitate the banks to take corrective measures including those prescribed by the Reserve Bank, in a timely manner, in order to restore their financial health,” it added.
 
Also, it provides an opportunity to the Reserve Bank to pay focussed attention on such banks by engaging with the management more closely in those areas, as per the central bank.
 
PCA framework is one such supervisory tool by RBI, which involves monitoring of certain performance indicators of the banks as an early warning exercise and is initiated once such thresholds as relating to capital, asset quality etc. are breached.
 
Earlier on December 20, RBI initiated PCA against Bank of India (BOI) for mounting of bad loans placing various restriction on the bank including issuance of fresh loans and dividend distribution.
 
The BoI would not be alone to face the RBI action as there are nine other such banks, mostly state-owned banks, for having higher stressed assets. They include IDBI Bank, Indian Overseas Bank, Bank of Maharashtra, United Bank of India, Dena Bank, Corporation Bank, UCO Bank, Central Bank of India and Oriental Bank of Commerce.
 
Last time in the month of June 2017, RBI gave similar clarifications while initiating banks under the PCA framework.
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
RBIprompt corrective actionBanks in PCA frameworkPCA frameworkRBI clarification PCA frameworkReserve Bank of Indiabanks stressed assetsBanks gross NPAsEconomyBanking & Financial Services
RELATED NEWS
Amazon Pay, Paytm, PhonePe, MobiKwik, PayU and Ola Pay – 3 GAME-CHANGERS for you Amazon Pay, Paytm, PhonePe, MobiKwik, PayU and Ola Pay – 3 GAME-CHANGERS for you
No bank account needed for payments via RTGS, NEFT now; here is how you will benefit No bank account needed for payments via RTGS, NEFT now; here is how you will benefit
Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi Monetary Policy announcements exhibit continuity and stability - Expert Ajay Bagga tells Anil Singhvi
RBI Monetary Policy 2021: KEY HIGHLIGHTS, top 11 points by Governor Shaktikanta Das and reactions - who said what? RBI Monetary Policy 2021: KEY HIGHLIGHTS, top 11 points by Governor Shaktikanta Das and reactions - who said what?
Account holders of this bank have a good news from RBI - All you need to know Account holders of this bank have a good news from RBI - All you need to know

LATEST NEWS

Vivo X60 Pro review: Buy it for an amazing camera experience

7th Pay Commission: DA, DR, TA calculation, salary change from July 1 and other updates for central government employees, pensioners

Railways to run Oxygen Express to meet demand during Covid 19; Green Corridor being created to facilitate movement of these trains

Man Industries has an order book of Rs 2,000 crore: Dr. R C Mansukhani, Chairman

Delhi Lockdown – Get full details on how public transport will function during the curfew period

Petrol, Diesel Price Today – Rates unchanged on Monday in 4 metros; Get prices in Delhi, Noida, Ghaziabad, other metros

Former PM Manmohan Singh tests positive for Covid-19, admitted to AIIMS Delhi

Delhi curfew, lockdown news: Arvind Kejriwal may ANNOUNCE curfew from Monday - Check all details here

Cipla, Cadila Healthcare, Glenmark Pharma: Technicals highlighted by Bonanza Portfolio

ACC net profit up 74 pct YoY in Jan-March quarter at Rs 562 cr; Co maintains “cautious yet positive outlook”; See 7 takeaways from results

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved