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    Question

    The key areas to be monitored under the Revised Prompt

    Correction Action framework of RBI does not include _____
    A Capital Correct Answer Incorrect Answer
    B Asset Quality Correct Answer Incorrect Answer
    C Leverage Correct Answer Incorrect Answer
    D Profitability Correct Answer Incorrect Answer
    E All of the above are included Correct Answer Incorrect Answer

    Solution

    Capital, Asset Quality and Leverage will be the key areas for monitoring in the revised framework of Prompt Correction Action for Scheduled Commercial Banks. Indicators to be tracked for Capital, Asset Quality and Leverage would be CRAR/ Common Equity Tier I Ratio, Net NPA Ratio and Tier I Leverage Ratio respectively. The profitability ratio RoA has been removed as one of the parameters for Prompt corrective action, effective January 2022.

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