Which of the following statements is TRUE regarding the

Solution

Statement A is incorrect because the PCA framework will apply only to UCBs with deposits above ₹100 crore. Statement B is correct as the PCA framework will replace the Supervisory Action Framework (SAF) for UCBs with deposits above ₹100 crore. Statement C is incorrect because Tier 1 UCBs with deposits up to ₹100 crore are excluded from the PCA framework but will continue to be under enhanced monitoring. Statement D is incorrect because the PCA invocation norms include a capital adequacy ratio (CAR) up to 250 bps below the required CAR, not 350 bps. Statement E is incorrect because the revised framework removes the hard-coded ₹25,000 limit on capital expenditure restrictions, allowing Supervisors to set limits based on individual assessments. Therefore, the correct statement is B, making it the correct answer for this question.