ee ee eee TORE] Ack WAS in news What is sect; eet eae ees | i Kept tome banks wnclese PCA tramewortk . Whak is PCA t how Tea alerts tune. a banke kept under tris treamewort 2 RB) 2 Gol vace two balancing uheels in the economic stability % ne country, Sn xecent times, due to difference % pinion 4 gtovs , Section + % RBI Ack Kame inky Section 4+ & RBI Act See + eH RBI Ack emponens celal govt to Lonel £ give Sustuihions to Govexney @ RB] 4D act MN werttdin ussues , tok the government considers seuss £ ir public interest. Once Section 4 16 lwokecl, alk supercinterdence 2 wdiceckion a business & Bank is quien to a ee ah Bs wis utio may exercerse aly acts /povers %% Bank. Contentious Issucs that brought up Sec 4 Un frame: © RBIs Feb I2 eireutase - ib a borcseowere misses RBIS Feb I2 weuccetan wen tov tology, would be depaullerr. - Powese wompoeunes challenged tris in Allahabad te a6 they wanted exemption tron thie neo nons @ POA noms - Govt wants to ease ib , So hak banks “ould lend move to MSMEs Jeading to economic Growth. @ Providing Liquidity te gover from Reb capital Ste serves. @ Otnere issues such as Classifticaion o NMAs+Bree eri tp Sec % pevevel to be a shecherc os Ue pas meverc been sect ever nov clark cloue @ 44) Lo Ayterumatt, % 2008 global «ereisis Beormpe Corcscective Actiom (PCA) Preuneneo” by PCA UB a mecretirce O% RBI tr mrariteining penomrecat heattt. ep banks | supp L) Ceupetat | Fa toring x Asset Quatity Precfuecuoititey Indicators ~~ cw R, (Capital to Rink weighted asset) brached. — Net NPA Tatio Rod (Remun on Assets) Commescual | Breach Banks wider beunks fetlow | ———> Fea norms | nove pevsect on audicad Annual FinencialResults : ‘Aeceomnen’ by RBI to ve followed > scios ae ee Mandatory actions Dis actions ge Special bane auclite Recedenon or curds on lending4 Divrdend pagmenks ceposit branch ertpansion a, ot Reduce high vist Durector's fee Capital erpunditunel Expect o6 TCA ' ng Vers MEMES objected > Grrovoth | bt neink acbarti2s % banks decrease Ly Higt poeovisiovinng a ruduced sending Ly Prope ecceases..L, Banke expansion scerbdriecl- _ Hence marmy banking OnWHNALs gey eet sid, 2 veomes wirdese wontenreUs water oy RBI. Cusveently |! banks Ame umrdsee pCh Sirens, a trey ace sruging Vo nome, oul Op RB) & Croves1m ert: , bolt, wu.st ctesepeck each, otnest's functions £ decisions + adclrtse Mie woncesené. Bote vrobeede Avi tse. bebvesey nem veer «ater Ae economic growth Hy vie court , Hene+ , vote mune walle haund ow laud Pov te emncottt fumnewerting a, economy weiter ustlt beting our bettert greatly or the wouter,