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India Business News: The Reserve Bank said that starting October 2024, the strict supervisory norms under the Prompt Corrective Action (PCA) Framework will apply to govern
The Reserve Bank of India (RBI) has announced that government-owned non-banking financial companies (NBFCs) will be subject to the strict supervisory norms of the Prompt Corrective Action (PCA) Framework starting from October 2024. This framework includes restrictions on dividend distribution and profit remittance, requirements for equity infusion by promoters/shareholders, leverage reduction, and limitations on issuing guarantees or taking on contingent liabilities for group companies.
The Reserve Bank of India (RBI) has announced that it will bring state-owned non-banking finance companies (NBFCs) under the prompt corrective action (PCA) framework from October 2023. The central bank will review the financials of these NBFCs as of March 2024. The PCA framework was initially introduced for NBFCs on December 14, 2021, to address their growing size and systemic importance.
Tata Capital is an RBI-registered non-deposit-accepting core investment company, which holds investments in its subsidiaries, which are engaged in lending and offering a wide array of services and products in the financial services sector.
Apart from Tata Sons, its subsidiary, Tata Capital Financial Services, is also included in the list. Tata Sons will be merging Tata Capital Financial Services into Tata Capital.