RBI lifts curbs on three PSBs

sfg-2026
ForumIAS LATEST
  1. 06 June | Open Orientation on Essay Guidance Program (EGP 2026) Click Here to register →
  2. 07 June | Open Orientation for Current Affairs for Mains 2026 Click Here to register →
  3. 07 June | Sociology Optional Strategy Session with AIR 10 Ujjwal Priyank Click Here to register →
  4. 08 June | Geography Optional Strategy Session with AIR 39 Rohin Kumar Click Here to register →

  1. The Reserve Bank of India (RBI) have allowed three public sector banks to exit the PCA framework following capital infusion by the government and a decline in net non-performing asset (NPA) ratio.
  2. To ensure that banks don’t go bust, RBI has put in place some threshold levels to assess, monitor, control and take corrective actions on banks which are weak and troubled.This process is known as Prompt Corrective Action or PCA.
  3. There are three risk thresholds which are based on certain levels of asset quality, profitability, capital and net non performing assets(NPA’s) ratio which should not cross 6%.
  4. This decision will give boost to the credit growth in the MSME and agricultural sector.
Print Friendly and PDF
Blog
Academy
Community