Question
Regarding 'Prompt Corrective Action' (PCA)
framework: 1. PCA applies to both Public and Private sector banks. 2. It is triggered if the Net NPA of a bank exceeds a certain threshold. 3. RBI can restrict dividend payments of a bank under PCA. Which of the statements above is/are correct?ĀSolution
All statements are correct. PCA is a "watch list" for banks with weak financial health, focusing on Capital, Asset Quality, and Leverage.
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