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The Reserve Bank Tuesday said it has been decided to extend the Prompt Corrective Action (PCA) framework for NBFCs to Government owned NBFCs (except those in Base Layer) with effect from October 1, 2024, based on the audited financials as on March 31, 2024, or thereafter
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.
According to RBI's new guidelines, capital, asset quality, and leverage will be the three key areas for monitoring in the revised framework.
Kolkata-based UCO Bank had exited the PCA framework earlier this month
Explore Now IDBI Bank’s retail portfolio should always be above 55% but in any case, 60% will be preferable, says IDBI Bank. Now that you are out of the PCA framework, what kind of opportunities does it really open for you as a bank? First of all, I am quite optimistic that coming out of the PCA framework will unlock many opportunities for us. It should be business as usual now. Now we would be able to do business as per the policies approved by the board. In the previous years, when we were also doing a little bit of development banking business, we were quite aggressive on infrastructure...