The central bank has issued a statement amid some misleading information circulating in media about the PCA framework.
The RBI’s prompt corrective action (PCA) is a supervision tool and does not constrain normal banking operations for the public, the bank said.
PCA was initiated to deal with high non-performing assets (NPAs) in case of some public sector banks. The central bank has put Dena Bank, IDBI Bank, Indian Overseas Bank and UCO Bank under the PCA in view of their mounting NPAs.
The Reserve Bank of India (RBI) has issued a statement amid some misleading information circulating in media as well as social media platforms about the PCA framework.
The PCA framework has been in operation since December 2002. The revised guidelines were issued in April 2017.