Question

Which of the following statements is TRUE regarding the RBI's Prompt Corrective Action (PC

  • A framework for Urban Cooperative Banks (UCBs) effective from April 1, 2025?
A The PCA framework will apply to all UCBs irrespective of their deposit size.
B The PCA framework will replace the Supervisory Action Framework (SAF) for UCBs with deposits above ₹100 crore.
C Tier 1 UCBs with deposits up to ₹100 crore are included in the PCA framework.
D The PCA invocation norms include a capital adequacy ratio (CAR) up to 350 bps below the required CAR.
E The revised framework maintains the hard-coded ₹25,000 limit on capital expenditure restrictions.
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