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Who has introduced a Prompt Corrective Action (PCA) framework for large Non-Banking Financial Companies (NBFCs)?
A)
Union Bank of India(UBI)
B)
Reserve Bank of India (RBI)
C)
State Bank of India(SBI)
D)
Asian Development Bank(ADB)

Correct Answer : Option (B) - Reserve Bank of India (RBI)



The Reserve Bank of India (RBI) has introduced a prompt corrective action (PCA) framework for large non-banking financial companies (NBFCs) with effect from October 2022, putting restrictions on para-banks whenever vital financial metrics dip below the prescribed threshold. This brings them almost on a par with banks in terms of supervision and regulatory reach.

Published On : December 17, 2021
Category : Banking
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