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Updated on: Tuesday, November 02, 2021, 06:36 PM IST

RBI revises PCA framework for banks effective from January, 2022

The RBI has placed no restriction on opening of current accounts or on provision of CC or OD facility by banks for borrowers with exposure of less than Rs 5 crore | File photo

The RBI has placed no restriction on opening of current accounts or on provision of CC or OD facility by banks for borrowers with exposure of less than Rs 5 crore | File photo

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The Reserve Bank of India (RBI) has revised the PCA framework for Scheduled Commercial Banks (SCBs).

It will come into effect from January 1, 2022.

The RBI said, the objective of the PCA framework is to enable supervisory intervention at appropriate time and require the supervised entity to initiate and implement remedial measures in a timely manner, so as to restore its financial health.

The PCA Framework is also intended to act as a tool for effective market discipline.

The PCA Framework does not preclude the Reserve Bank of India from taking any other action as it deems fit at any time, in addition to the corrective actions prescribed in the framework, it said.

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Published on: Tuesday, November 02, 2021, 06:32 PM IST
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