Money & Banking

Centre promises to help public sector banks come out of PCA framework

K.R.Srivats New Delhi | Updated on May 17, 2018

A file photo of Finance Minister, Piyush Goyal

Finance Minister Piyush Goyal holds meeting with the chiefs of 11 PSU banks

The Finance Minister, Piyush Goyal, on Thursday expressed confidence that the 11 public sector banks (PSBs) that are under RBI’s Prompt Corrective Action (PCA) framework would be able to overcome their “legacy issues” in a very short period of time.

“The Centre would over the next few days ensure that every possible support is given to strengthen the resolve of these banks to come out of the PCA framework as quickly as possible,” Goyal told reporters after a meeting with the heads of 11 PSBs who are under RBI’s PCA framework.

These 11 banks will be able to continue to serve the common man through more aggressive banking, maintaining the highest standards of ethics and integrity, Goyal said.

The 11 banks under PCA are Dena Bank, Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce and Bank of Maharashtra.

PCA is the process or mechanism to ensure that banks don’t go bust. Under the process, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled.

Published on May 17, 2018

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