Question
Which of the following statements about Prompt
Corrective Action is/are True? I-                   Prompt Corrective Action Framework refers to the central bank’s watchlist of weak banks. II-                 The regulator can impose restrictions only after seeking approval from FSDC. III-               The PCA Framework applies only to commercial banks and does not cover all types of cooperative banks and non-banking financial companies.Solution
Prompt Corrective Action Framework refers to the central bank’s watchlist of weak banks. The regulator imposes restrictions like curbs on lending on such banks. The PCA Framework applies only to commercial banks and does not cover cooperative banks and non-banking financial companies.
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