RBI issues prompt corrective action framework for urban cooperative banks.

Banking & Finance

The Reserve Bank of India (RBI) has introduced a Prompt Corrective Action (PCA) framework for urban cooperative banks (UCBs). This new framework aims to enhance the financial health of these banks by setting strict guidelines and monitoring mechanisms. It focuses on addressing issues such as asset quality, capital adequacy, and profitability. Under the PCA framework, UCBs that fail to meet certain performance criteria will face corrective measures to ensure their stability and operational efficiency. This initiative is expected to strengthen the banking sector and protect depositors' interests.


      PCA framework enforces strict performance benchmarks, requiring UCBs to improve financial stability and operational standards.

      The RBI's initiative aims to prevent potential defaults and safeguard the interests of depositors in urban cooperative banks.

     

 

     


About RBI,

CEO : Shaktikanta Das
Headquarter : Mumbai
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