Question

A PCA Framework for NBFCs has also been put in place to

further strengthen the supervisory tools applicable to NBFCs, The same shall apply to:? Read the following passage and answer the next 5 question Central Bank along with a clutch of other lenders was placed under RBI's prompt corrective action (PCA) in 2017 after the regulator found some state-run lenders were in breach of its rules on regulatory capital, bad loans and leverage ratios. Since then all the lenders except Central Bank have improved their financial health and come off RBI's PCA list. A bank under PCA faces greater scrutiny by the regulator and may face lending and deposit restrictions, branch expansion and hiring freezes and other limitations on borrowings. The RBI introduced these norms at a time when Indian lenders were battling record levels of soured assets, prompting the RBI to tighten thresholds. Source: economictimes

A All Deposit Taking NBFCs [Excluding Government Companies]

B All Deposit Taking NBFCs [Including Government Companies]

C All Non-Deposit Taking NBFCs in Middle, Upper and Top Layers (excluding few categories)

D Both a and c

E Both b and c

Practice Next

More Alternate Sources of Finance Questions

A PCA Framework for NBFCs has also been put in place to

Solution