RBI notifies corrective action framework for UCBs
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Mumbai: Reserve Bank of India (RBI) on Friday issued a prompt corrective action framework for Urban Co-operative Banks (UCBs) with an aim to enabling supervisory intervention at an appropriate time.
The provisions of the Prompt Corrective Action (PCA) Framework for Primary UCBs will be effective from April 1, 2025. The objective of the PCA Framework is to enable supervisory intervention at an appropriate time and require the UCBs to initiate and implement remedial measures in a timely manner, to restore their financial health.
The Reserve Bank had issued a Supervisory Action Framework (SAF) as an early intervention tool for bringing about desired improvements in weak UCBs and UCBs which are experiencing financial stress. The SAF was last revised in January 2020.
