No question of closing down any public sector banks, RBI clarifies

Dec 22:Dismissing rumours surrounding the closure of public sector banks, the Reserve Bank of India (RBI) on Friday clarified that that there was no question of shutting down any bank.
Rumours about adverse financial strength of some public sector banks started swirling when the RBI initiated a 'prompt corrective action' (PCA) against large state-owned lender Bank of India.
"The Reserve Bank of India has come across some misinformed communication circulating in some section of media including social media, about closure of some Public Sector Banks in the wake of their being placed under the Prompt Corrective Action (PCA) framework," it said.
Clarifying its stance, the central bank drew attention to the press release issued in June, which said: "The Reserve Bank has clarified that the PCA framework is not intended to constrain normal operations of the banks for the general public."
Maintaining that it uses various measures to maintain sound financial health of banks, the RBI underlined the importance of the PCA framework, insisting that it is intended to encourage banks to eschew certain riskier activities and focus on conserving capital.
"PCA framework is one of such supervisory tools, which involves monitoring of certain performance indicators of the banks as an early warning exercise and is initiated once such thresholds as relating to capital, asset quality etc. are breached. Its objective is to facilitate the banks to take corrective measures including those prescribed by the Reserve Bank, in a timely manner, in order to restore their financial health," the RBI said.
"The framework also provides an opportunity to the Reserve Bank to pay focussed attention on such banks by engaging with the management more closely in those areas. The PCA framework is, thus, intended to encourage banks to eschew certain riskier activities and focus on conserving capital so that their balance sheets can become stronger," it added.
Emphasising that the PCA framework has been in operation since December 2002, the RBI said the guidelines issued on April 13, 2017 is only a revised version of the earlier framework." Agencies
Source: Agencies


  
  

Comments


No comments yet! Be the first one to leave a comment.


Add Comment

Name:
Email:
Comment:

More India News


CM Palaniswami defends police firing, says natural course against atta ..


After PM Modi accepts fitness challenge, Rahul Gandhi throws another a ..

- Nipah virus claims one more life in Kerala, death toll rises to 12
- India successfully test-fires BrahMos supersonic cruise
- Ajit Doval hasn't changed policy, just more hardline, says ISI ex-chief General
- Fuel prices hit the roof in India
- Three coaches of Andhra Pradesh Express catch fire in Gwalior
- Once again, Supreme Court Collegium stalls on Justice KM Joseph's name
- Once again, Supreme Court Collegium stalls on Justice KM Joseph's name
- Food processing industry in state facing several challenges, says Punjab Agricul
- PM Modi rode to power on promise of reducing fuel prices, why is he unable to cu
- Jammu and Kashmir: Three militants killed in encounter with security forces; civ
- Choose between development and communalism, Siddaramaiah tells Badami voters
- Jharkhand rape-murder case: 14 arrested, including prime accused
- If 10% of the Indians curious to know the truth
- SC terms killing of Himachal officer 'extremely serious', may take up case tomor
- Karnataka's milk subsidy: Win-win for kisans and kids
- Madhya Pradesh police recruitment: Medical examinations of men and women in same
- In 5 years, 46% hike in base: Tax net widens as individuals fuel the surge
- Modi avoided critical issues during 'casual' China visit: Sena
- Trump administration toughens H1-B visa procedure
- J&K Cabinet approves ordinance awarding death for rape of girl below 12 years

Related News

Amid concerns over FRDI bill, Arun Jaitley says govt will 'fully protect' public deposits
Dec 11:Union Finance Minister Arun Jaitley on Monday sought to allay concerns of depositors over provisions of a draft law, insist .. read more
No loan waiver for capitalists, says Arun Jaitley
Nov 28:The government has not waived any loans of big NPA defaulters, Finance Minister Arun Jaitley said on Tuesday dismissing rum .. read more
Govt announces plans to recapitalise PSBs, to infuse Rs 1,00,000 crore by March
Jan 24:The government on Wednesday announced the reforms roadmap for the public sector banks and issued details of how the Rs 80,0 .. read more
Linking Aadhaar number to bank accounts mandatory, RBI clarifies
Oct 21:The Reserve Bank of India (RBI) on Saturday clarified that linkage of Aadhaar number to bank accounts is mandatory in appli .. read more
RBI leaves repo rates unchanged at 6 per cent
April 5:The Reserve Bank of India on Thursday kept repo rates unchanged at 6 per cent. The six-member Monetary Policy Committee, f .. read more

More Related News

- Piyush Goyal vows to clean up banking sector
- AP to form 6 sub-committees including bankers to drive growth
- TS Govt to promote Bio-Tech industries
- Direct loans for minorities from next year: Dy CM
- Direct loans for minorities from next year: Dy CM
- Let cash curbs stay till new notes come in, banks tell govt
- Talasani denies misappropriation of funds in sheep procurement
- Cash crunch: Banks in TS, AP impose restrictions on withdrawals
- TS Govt to implement Start-up and Stand-up India policy
- TS Govt to implement Start-up and Stand-up India policy

More Latest News:

- CM Palaniswami defends police firing, says natural course against attack
- After PM Modi accepts fitness challenge, Rahul Gandhi throws another at him: 'Reduce fuel prices or face nationwide agitation'
- Shashi Tharoor tells Congress not to be embarrassed by cash crunch, suggests how to take on BJP's 'moneybags'
- Fissures in MP Congress unit ahead of party president Rahul Gandhi's visit
- Nipah virus claims one more life in Kerala, death toll rises to 12
- J&K: Lull in border firing after nine days
- KTR directs HMWSSB to complete road restoration works by June 15
- Schools in Telangana to reopen on June 1
- KTR calls for cooperation between public and private health care sector
- Delay in desiltation works worrying GHMC corporators
- Telangana to fill vacant posts in NIMS
- Hyderabad-based UDo will answer all your queries
- Telangana to launch e-mobility policy in June, says Jayesh
- Andres Iniesta signs with Japan's Vissel Kobe
- While Neymar continues recovery, Douglas Costa picks up injury
- Russians to take no part in World Cup drug testing: FIFA
- Race 3: Salman Khan turns lyricist for song Selfish. Here's how
- Aamir Khan on his earlier films: I was constantly swimming against the tide
- Malaysia's ex-leader Najib Razak questioned again in corruption scandal
- Thailand arrests senior monks in temple raids to clean up Buddhism
- 'Nut rage' Korean Air heiress questioned over illegal Filipino maids
- Telangana's Thurupu close to getting genetic recognition
- Citizens appealed to enroll in electoral rolls in Hyderabad
- Rumour of brain eating gangs reaches Hyderabad
- Ankita Raina sure-footed for clay course ahead of French Open qualifying
This page was created in 0.0330350399017 seconds