The Reserve Bank of India(RBI) had initiated PCA against Allahabad Bank over its high bad loans. What does "PCA" stand for? [JAN 2018]

Prompt Control Action

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Prompt Corrective Action

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Solution

The correct option is D Prompt Corrective Action
The Reserve Bank of India (RBI) had initiated Prompt Corrective Action (PCA) against public sector lender Allahabad Bank, owing to its high net Non-Performing Assets (NPAs) and negative Return on Assets (RoA) for two consecutive years. The action would contribute to the overall improvement in risk management, asset quality, profitability, efficiency of the bank. The RBI had initiated similar action against other public sector banks, including IDBI Bank, Indian Overseas Bank and UCO Bank.

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