RBI take out Central Bank of India from PCA restrictions

RBI take out Central Bank of India from PCA restrictions: RBI has decided to remove the Central Bank of India from its Prompt Corrective Action Framework (PCAF).

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Reason: Improvement in various financial ratios, including minimum regulatory capital

PCA norms: It is a supervisory tool and is imposed on banks, when they breach certain regulatory thresholds on capital to risk weighted assets ratio, net NPAs, and return on assets. The RBI imposed PCA norms on the bank in June 2017 due to its high net NPA and negative RoA.