With reference to banking sector the Prompt Corrective Action framework of RBI is applicab...........

Indian Economy (Easy) Money and banking

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With reference to banking sector, the Prompt Corrective Action framework of RBI is applicable to:

1. Public sector banks

2. Private commercial banks

3. Co-operative banks

Select the correct answer using the code given below.

1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

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Explanation:

To ensure that banks do not go bankrupt, 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 by RBI is known as Prompt Corrective Action, or PCA.

Till date, there are 10 public sector banks that have come under PCA viz. United Bank of India, Bank of India, Corporation Bank, Oriental Bank of Commerce, Dena Bank, Central Bank of India, IDBI Bank, Indian Overseas Bank, Bank of Maharashtra and UCO Bank.