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On January 3, 2018, RBI initiated ‘PCA’ against the Allahabad Bank. How many public sector banks have been covered under ‘PCA’?

On January 3, 2018, RBI initiated ‘PCA’ against the Allahabad Bank. How many public sector banks have been covered under ‘PCA’? Correct Answer 11

PCA:

  • stands for “Prompt Corrective Action”
  • generally restricts lending activities of the banks
  • direct banks to disburse loans only to those companies whose borrowing is above investment grades
  • 11 public sector banks have been covered under it. For eg: Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India etc.

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