November 02, 2021<\/p>\n
All Scheduled Commercial Banks
\n(Excluding Small Finance Banks, Payment Banks and Regional Rural Banks)<\/p>\n
Madam\/ Dear Sir,<\/p>\n
Please refer to the circular No. DBS.CO.PPD.BC.No.8\/11.01.005\/2016-17 dated April 13, 2017 on the Revised Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks (SCBs).<\/p>\n
2. The existing PCA Framework for SCBs has since been reviewed and revised. The revised Framework is provided in the Annex.<\/p>\n
3. The provisions of the revised PCA Framework will be effective from January 1, 2022.<\/p>\n
4. The objective of the PCA Framework is to enable Supervisory intervention at appropriate time and require the Supervised Entity to initiate and implement remedial measures in a timely manner, so as to restore its financial health. The PCA Framework is also intended to act as a tool for effective market discipline. The PCA Framework does not preclude the Reserve Bank of India from taking any other action as it deems
\nfit at any time, in addition to the corrective actions prescribed in the Framework.<\/p>\n
5. The contents of the circular may be brought to the attention of the bank\u2019s Board of Directors.<\/p>\n
Yours faithfully<\/p>\n