News:The Reserve Bank of India (RBI) has initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank(LVB). Facts: What is Prompt corrective action(PCA): PCA is a framework under which banks with weak financial metrics are put under watch by the RBI. The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for banks… Continue reading Prompt Corrective Action (PCA)
1.The government said they will try to help lift the restrictions on other public sector banks too after the Reserve Bank of India (RBI) lifted restrictions under prompt corrective action (PCA) on three public sector banks last week. 2.The PCA framework kicks in when banks breach any of the three key regulatory trigger points —… Continue reading Will try to lift more banks from PCA
Tussle for power: what’s the RBI-government stand-off? News: The article discusses about the simmering tensions between the Reserve Bank of India and the Centre which found spectacular release recently through a public speech by Deputy Governor Viral Acharya. Important Facts: A certain amount of creative tension is systemically in-built between Reserve Bank of India and… Continue reading Tussle for power: what’s the RBI-government stand-off?