ForumIAS LATEST
- SFG FRC 2027 | Program starts from 19th Dec. 2026 | Admissions open for Entrance Test Click Here to know more →
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 11th Oct. Click Here to Read More →
RBI takes 3 banks off prompt corrective action framework
- The Reserve Bank of India (RBI) took three more banks out of the prompt corrective action (PCA) framework, following an improvement in the public-sector banks’ (PSBs) financial ratios after a fresh round of capital infusion in them by the government.
- PCA is a process or mechanism to ensure that banks don’t go bust. Under it, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled.
- 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%.
- This decision will give boost to the credit growth in the MSME and agricultural sector.
