Question
RBI introduced the Prompt Corrective Action (PCA)
framework in ___________.Solution
Prompt Corrective Action (PCA) is a framework under which banks with weak financial metrics are put under watch by the RBI. The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for banks that become undercapitalized due to poor asset quality, or vulnerable due to loss of profitability. It aims to check the problem of Non-Performing Assets (NPAs) in the Indian banking sector.
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