RBI extends PCA framework to government-owned NBFCs from October 2024 | Mint

The Reserve Bank of India (RBI) has extended the Prompt Corrective Action (PCA) framework to government-owned Non-Banking Financial Companies (NBFCs) starting October 2024. The PCA framework, which was previously applicable only to banks, aims to ensure the financial health and stability of NBFCs by imposing corrective measures when certain thresholds are breached. The extension of the PCA framework to NBFCs is part of RBI’s efforts to strengthen the regulatory oversight of the financial sector. The move is expected to enhance the resilience of NBFCs and protect the interests of depositors and investors. The PCA framework will help identify and address potential risks in a timely manner, ensuring the stability of the financial system.