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RBI has issued a policy action guideline (first in May 2014 and revised effective from April 1, 2017) in the form of Prompt Corrective Action (PCA) Framework if a commercial bank’s financial condition worsens below a mark. The parameters that invite corrective action from the central bank are: · 1. Capital to Risk weighted Asset Ratio (CRAR) · 2. Net Non-Performing Assets (NPA)- Asset Quality · 3. Return on Assets (RoA)- Profitability · 4. Leverage Ratio When these parameters reach the set trigger points for a bank (like CRAR of 9%, 6%, 3%), the RBI will initiate certain actions for the bank.
According to the provisions of Section 127 of the Companies Act, 2013, if a company fails to pay the dividend, within a period of 30 days from the date ...
Assets categorized in stage 3 cannot be directly brought to Stage 1 even after the irregularities are rectified, for how much time bank must keep stage ...
As per the RBI’s guidelines for scale based regulation of NBFCs , a NBFC - MFI is required to have _____ net owned funds by March 31, 2027.
What is the primary purpose of the Tandon Committee recommendations in working capital finance?
What is the purpose of the Clearing Corporation of India Limited (CCIL) in the Indian capital market?
A setup in which group of individuals or entities decides to pool resources towards fulfilling a debt or financing a single borrower wherein the setup i...
Which two components form the Ayushman Bharat Scheme?
Accounting Standards do not permit following method of inventory valuation:
Which of the following were the objectives of the Twelfth Five-Year Plan?
Internal rate of return (IRR) is the ________ rate at which the net present value of the cash flows from a project is _______.