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RBI Removes Central Bank of India from PCA Framework

Category : Business and economics
Published on: September 22 2022 Share on facebook

The Reserve Bank of India (RBI) removed Central Bank of India from its Prompt Corrective Action Framework (PCAF) after the lender showed improvement in various financial ratios, including minimum regulatory capital and net non-performing assets (NNPAs).
The RBI had imposed the PCA norms on the bank in June 2017 due to its high net NPA and negative return of assets (RoA).
After reviewing the performance of the Central Bank of India, RBI decided to remove the restrictions on the bank.
RBI initiated the Scheme of Prompt Corrective Action (PCA) in 2002.
In early 2018, there were 12 banks under PCA framework. Of these, 11 were PSBs.

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