RBI Revises Prompt Corrective Action Framework For Commercial Banks, To Be Effective From January 1, 2022

Reserve Bank of India has revised the existing prompt corrective action (PCA) framework for scheduled commercial banks, which will be applicable from January 1, 2022. The main purpose of this exercise is to enable supervisory intervention at an appropriate time, following which, the entity being supervised is expected to implement remedial measures in a time-bound manner to restore its financial stability.