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      Question

      Under the revised PCA framework for commercial banks,

      which operational metric was entirely removed as an independent trigger point or parameter for invoking corrective actions?
      A Capital Adequacy Ratio (CRAR) Correct Answer Incorrect Answer
      B Common Equity Tier 1 (CET1) Ratio Correct Answer Incorrect Answer
      C Return on Assets (RoA) Correct Answer Incorrect Answer
      D Net NPA Ratio Correct Answer Incorrect Answer
      E Tier 1 Leverage Ratio Correct Answer Incorrect Answer

      Solution

      In the updated revisions to the framework, Return on Assets (RoA)—which measured profitability—was removed as an independent metric for invoking PCA, focusing the core indicators strictly on capital, asset quality, and leverage.

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