Explanation:

The Reserve Bank of India announced a Prompt Corrective Action (PCA) Framework for Non-Banking Financial Companies (NBFCs), to strengthen applicable supervisory tools.

• This will take effect October 1, 2022.
• This is in line with the PCA framework for banks, whose aim was to help improve their financial condition and governance issues.
• The framework will apply to all deposit-taking NBFCs, all non-deposit taking NBFCs in the middle, upper and top layers, including investment and credit firms, core investment firms, infrastructure debt funds, infrastructure finance firms and microfinance institutions.
• It has excluded NBFCs not accepting or not intending to accept public funds, primary dealers and housing finance firms, along with government-owned ones.
• The objective of the framework is to enable supervisory intervention at the appropriate time and require the supervised entity to initiate and implement remedial measures in a timely manner, so as to restore its financial health.
• Among large NBFCs (assets exceeding Rs 25,000 crore), rating agency ICRA noted that three entities were in breach of the net NPA criterion as of September. However, all the entities have established parentage.

Hence both statements are correct.