RBI extends PCA framework to government-owned NBFCs from October 2024
Click here! The NBFCs have been growing in size and have substantial interconnectedness with other segments of the financial system. Accordingly, the RBI in 2022 decided to put in place a PCA Framework for NBFCs to further strengthen the supervisory tools applicable to NBFCs.
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 framework is also intended to act as a tool for effective market discipline.
It does not preclude the apex bank from taking any other action as it deems fit at any time in addition to the corrective actions prescribed in the Framework. The PCA Framework for NBFCs came into effect from October 1, 2022, based on the financial position of NBFCs on or after March 31, 2022."Exciting news! Mint is now on WhatsApp Channels
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