The Reserve Bank of India has removed Central Bank of India from the Prompt Corrective Action (PCA) framework after it was found that the bank was not violating any of the parameters.
But, the bank is being pulled out of restrictions subject to “certain conditions and continuous monitoring”, the RBI said on Tuesday.
“The performance of the Central Bank of India, presently under the Prompt Corrective Action Framework (PCAF) of the Reserve Bank of India, was reviewed by the Board of Financial Supervision. As per, 2022, the bank is not in contravention of the PCA norms,” RBI said in a statement.
RBI said in the statement that the Central Bank of India has given a written commitment that it will adhere to the norms of minimum regulatory capital, net NPA and leverage ratio on an ongoing basis and has been apprised of the structural and systemic reforms undertaken therein. Which will help the Bank in meeting these commitments.
In June 2017, the RBI had put the Central Bank under PCA due to alleged high net non-performing assets.
Prompt Corrective Action (PCA) is a framework under which the central bank monitors financially weak banks.
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