Economics · Economy

Which of the following statements best describes the 'Prompt Corrective Action' (PCA) framework of the Reserve Bank of India (RBI)?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1It is an audit mechanism for tracking the fiscal deficit of State governments
2It is a supervisory tool to maintain the sound financial health of commercial banks✓
3It is a scheme launched by the government to recapitalize weak cooperative banks
4It is a tool used by SEBI to prevent market volatility during IPOs

Correct answer

It is a supervisory tool to maintain the sound financial health of commercial banks

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