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    Question

    According to the information provided by the Reserve

    Bank of India, Prompt Corrective Action (PCA) Framework will apply to government-owned non-banking financial companies & these include PFC, REC, IRFC and IFCI.Thus the framework will be applied from ________. 
    A June 2024 Correct Answer Incorrect Answer
    B August 2024 Correct Answer Incorrect Answer
    C October 2024 Correct Answer Incorrect Answer
    D December 2024 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

      The Reserve Bank of India has notified that  the strict supervisory norms under the Prompt Corrective Action (PCA) Framework will apply to government-owned non-banking financial companies from October 2024.  Being put under the PCA framework means restrictions on dividend distribution/ remittance of profits; promoters/ shareholders to infuse equity and reduction in leverage; and restrictions on the issue of guarantees or taking on other contingent liabilities on behalf of group companies.  Some of the major government non-banking financial companies (NBFCs) include PFC, REC, IRFC and IFCI.

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