Question

The key areas to be monitored under the Revised Prompt Correction Action framework of RBI does not include _____

Q: Answer-The key areas to be monitored under the Revised Prompt Correction Action framework of RBI does not i...

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.