Question
PCA norms allow the regulator to place certain restrictions such as halting branch expansion and stopping dividend payment. ……………………………………………………………. Other corrective action that can be imposed on banks include special audit, restructuring operations and activation of recovery plan. Banks’ promoters can be asked to bring in new management, too. The RBI can also supersede the bank’s Board, under PCA.
In each of these questions, a paragraph is given that has blank in it. Five sentences (1), (2), (3), (4) and (5) are suggested. Out of these, only one fits the blank in the context of the paragraph. Pick that sentence as the answer.
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