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Banks under PCA will get over legacy issues soon, says Goyal
News:
- Financial Minister said that the 11 banks placed in the Prompt Corrective Action (PCA) plan would overcome their ‘legacy’ issues and emerge stronger within no time.
Important News:
- The banks under PCA are Dena Bank, Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce and Bank of Maharashtra.
- Indiscriminate lending by the banks are largely responsible for them being placed under the PCA framework.
- PCA is the process or mechanism to ensure that bank would not collapse. Under PCA, RBI has put in place some trigger points to access, monitor, control, and take corrective actions on banks which are weak and troubled.
4.Under the PCA, banks face restrictions on distributing dividends and remitting profits.
5.The Centre ensures help to the banks to come out of the PCA framework as quickly as possible.
