Supreme Court: General Fraud Allegations Cannot Extend Limitation under Section 74 CGST Act  ||  SC: ‘No Coercive Steps’ Order Cannot Restrain Filing of Charge Sheet  ||  Chhattisgarh HC: Maintenance for Autistic Child May Continue Beyond 18 Until Self-Sufficient  ||  P&H HC: 45-Day Delay in Informing Detenue of Representation Right Violates Article 22(5)  ||  Rajasthan HC Bars Courts from Protecting those Responsible for Building Defects at their Own Peril  ||  Allahabad HC: Clarification Issued Before Decision Applies to Pending Tender Complaints  ||  Allahabad HC: Father’s Custody Cannot be Denied without Proof of Guardianship Unfitness  ||  Bombay High Court: Each Petitioner Must Pay Court Fee Where Causes of Action are Separate  ||  P&H High Court: Counsel’s Ignorance of Readily Available Prior Litigation Amounts to Dereliction  ||  SC: Amendments to Government Orders Must Be Construed Fairly to Prevent Hardship    

RBI Clarification on Banks under Prompt Corrective Action- (Reserve Bank of India) (05 Jun 2017)

MANU/RPRL/0091/2017

Banking

The Reserve Bank of India has come across some misinformed communication circulating in some section of media including social media, about the Prompt Corrective Action (PCA) framework. The Reserve Bank has clarified that the PCA framework is not intended to constrain normal operations of the banks for the general public.

It is further clarified that the Reserve Bank, under its supervisory framework, uses various measures/tools to maintain sound financial health of banks. PCA framework is one of such supervisory tools, 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. Its 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. The framework also provides an opportunity to the Reserve Bank to pay focussed attention on such banks by engaging with the management more closely in those areas. The PCA framework is, thus, intended to encourage banks to eschew certain riskier activities and focus on conserving capital so that their balance sheets can become stronger. The Reserve Bank has emphasized that the PCA framework has been in operation since December, 2002 and the guidelines issued on April 13, 2017 is only a revised version of the earlier framework.

Tags : CORRECTIVE ACTION   FRAMEWORK   CLARIFICATION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved