The Board for Financial Supervision (BFS) of the RBI is expected to take a call on taking out the three banks from PCA. In the last BFS meeting held on February 18, 2021, it was decided to take out IDBI from the PCA framework.
The exit of IDBI Bank from the PCA framework of the RBI could be precursor to the remaining three PSU banks coming out of PCA anytime soon. The government has also indicated that it’s ready to infuse more capital into these banks to improve their financial position.
In this Banking Brief, we would try to explain the Prompt Corrective Action (PCA) Framework of RBI, the way out and the current scenario in Indian Banking System. To have better insights, kindly go through the post.
Source Credit: RBI and Live Mint