​PCA Framework for Urban Cooperative Banks

On 26th July 2024, the Reserve Bank of India (RBI) released a Prompt Corrective Action (PCA) Framework for Urban Cooperative Banks (UCBs).

  • The PCA framework is largely principle-based with fewer numbers of parameters as compared to the Supervisory Action Framework (SAF), without any dilution in the supervisory rigour.

Salient Features of the PCA Framework

Objective

  • To enable supervisory intervention at an appropriate time and require the UCBs to initiate and implement remedial measures in a timely manner.
  • To restore their financial health.

Replacing SAF

  • The PCA framework for UCBs will replace the existing Supervisory Action Framework (SAF) and come ....

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