RBI to impose PCA supervisory guidelines on government-owned NBFCs from October 2024; RBI has directed BoB to stop customer onboarding on mobile apps.
Banking & Finance
The Reserve Bank on Tuesday said it plans to extend the prompt corrective action (PCA) framework for public sector NBFCs (except base layer) based on their audited financial position as of March 31, 2024, from October 1, 2024. . Once government-owned NBFCs are placed under the PCA framework, there will be restrictions not only on dividend distribution/remittance of profits; But also restrictions on promoters/shareholders from raising equity and reducing leverage; and on issuing guarantees or undertaking other contingent liabilities on behalf of the group companies.” The framework has since been reviewed and it has been decided to extend it to government NBFCs (except base layer) with effect from October 1, 2024 , which depends on it. “The audited financial position of the NBFC on or after March 31, 2024,” the RBI circular read.
____________________________
