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      Question

      What is the key difference between SAF and PCA frameworks

      for urban co-operative banks?
      A PCA uses only profitability, SAF uses capital Correct Answer Incorrect Answer
      B SAF includes dividend restrictions, PCA does not Correct Answer Incorrect Answer
      C PCA mandates corrective actions, while SAF encouraged self-corrective action Correct Answer Incorrect Answer
      D PCA applies to rural banks, SAF applies to urban banks Correct Answer Incorrect Answer
      E PCA is only applicable to NBFCs Correct Answer Incorrect Answer

      Solution

      PCA mandates corrective measures for UCBs, whereas SAF encouraged self-corrective action before regulatory intervention.

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