Maharashtra State Service Pre 2026 PracticeHard
Q.Read the following statements regarding the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI): (a) The PCA framework is applicable only to Scheduled Commercial Banks and does not apply to Non-Banking Financial Companies (NBFCs). (b) Capital to Risk-Weighted Assets Ratio (CRAR), Net Non-Performing Assets (NPA), and Tier 1 Leverage Ratio are the key financial indicators tracked under this framework. (c) A financial institution placed under the PCA framework faces mandatory restrictions on dividend distribution and branch expansion. Which of the statements given above is/are incorrect?
a
(1) Only (a)
b
(2) Only (a) and (b)
c
(3) Only (c)
d
(4) None of the above
Correct Answer: Option A
The correct solution involves applying the fundamental concept to derive the final value step by step...