Question

Q13. Consider the following statements about Prompt Corrective Action, or PCA:

1. It is meant to assess, monitor, control and take corrective actions on banks which are weak and troubled.

2. The process or mechanism under which such actions are taken is known as Prompt Corrective Action, or PCA.

Which of the following statements are correct?

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

To ensure that banks don’t go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. The process or mechanism under which such actions are taken is known as Prompt Corrective Action, or PCA