INSUBCONTINENT EXCLUSIVE:
Any easing of rules for banks or non-banking finance companies by a new regime may bring short-term breather for the firms but will only
postpone reform of the banking system to the future, say analysts.
Eleven public sector banks, including Bank of India, Allahabad Bank, Uco
Bank, United Bank of India, IDBI Bank, Dena Bank and Indian Overseas Bank are under the prompt corrective action (PCA), under which there
are restrictions on lending and expanding
The government was in discussion with RBI for easing PCA norms
points to assess, monitor, control and take corrective actions on banks which are weak
The demand has been for a more transparent and flexible approach towards PCA banks
The RBI board has agreed to set up a committee to revise the norms
PCA is triggered when banks breach certain regulatory requirements such as minimum capital, profitability and non-performing assets
regulatory power, absence of governance reforms and reluctance to consider privatisation of PSU banks are some of the reasons that have
