The Reserve Bank of India (RBI) has issued a new prompt corrective action (PCA) framework for urban cooperative banks (UCBs) to enable supervisory intervention at an appropriate time, and the same will be effective from April 2025.

• The revised framework seeks to provide flexibility to design entity specific supervisory action plans based on the assessment of risks on a case-by-case basis, the apex bank , the banking regulator, said.
• The objective of the framework is to enable supervisory intervention at appropriate time and require UCBs to initiate and implement remedial measures in a timely manner, to restore their financial health.
• The RBI had issued a supervisory action framework (SAF) as an early intervention tool for bringing about desired improvements in weak UCBs or those experiencing financial stress. The SAF was last revised in January 2020.