Q. Which organization recently issued a Prompt Corrective Action (PCA) framework to take steps for improvement of weak Urban Cooperative Banks (UCBs)?
Answer:
RBI
Notes: The Reserve Bank of India (RBI) introduced a Prompt Corrective Action (PCA) framework to improve weak Urban Cooperative Banks (UCBs). This framework aims for timely supervisory intervention, ensuring UCBs initiate remedial measures to restore financial health. The PCA will focus on monitoring capital, asset quality, and profitability. It replaces the existing Supervisory Action Framework (SAF) and will apply to UCBs with deposits exceeding Rs 100 crore. The PCA framework serves as an early intervention tool to enhance the stability and performance of UCBs.