Check out PCA guidelines by Reserve Bank of India

Reserve Bank of India (RBI) recently changed its measures and upgraded guidelines for prompt corrective action (PCA). According to new guidelines, if a bank reaches the ‘risk threshold 3’ category, it will be a likely candidate for recovery measures such as amalgamation, reconstruction and winding up.

Posted By : Ankit Pal
Prompt Corrective Action (PCA) guidelines by Reserve Bank of India
Prompt Corrective Action (PCA) guidelines by Reserve Bank of India
New Delhi:

Reserve Bank of India (RBI) recently changed its measures and upgraded guidelines for prompt corrective action (PCA).

According to new guidelines, if a bank reaches the ‘risk threshold 3’ category, it will be a likely candidate for recovery measures such as amalgamation, reconstruction and winding up.

“A bank will be placed under PCA framework based on the audited annual financial results and the supervisory assessment made by RBI. However, RBI may impose PCA on any bank during the course of a year (including migration from one threshold to another) in case the circumstances so warrant,” RBI said.

Click to read official Prompt Corrective Action (PCA) Framework by Reserve Bank of India (RBI).

Click to read official Revised Prompt Corrective Action (PCA) Framework for Banks by Reserve Bank of India (RBI)

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