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      Question

      Under the prompt corrective action (PCA) framework,

      which of the following parameters is NOT monitored by the RBI?Β 
      A Capital to Risk-weighted Assets Ratio (CRAR) Correct Answer Incorrect Answer
      B Net Non-Performing Assets (NNPA) Correct Answer Incorrect Answer
      C Return on Assets (RoA) Correct Answer Incorrect Answer
      D Credit-to-Deposit Ratio Correct Answer Incorrect Answer
      E Tier 1 Leverage Ratio Correct Answer Incorrect Answer

      Solution

      PCA focuses on Capital, Asset Quality (NNPA), and Leverage. While RoA was previously a primary indicator, the revised 2021 framework focuses heavily on Capital, Asset Quality, and Leverage.

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