RBI’s Acharya stresses need for ‘prompt corrective action’

The RBI tower

The Reserve Bank of India’s ‘prompt corrective action’ (PCA) framework is an important part of its ability to maintain banking sector stability, said Viral Acharya on October 12.

The deputy governor told an audience at the Indian Institute of Technology, Bombay, that it was essential for supervisors to be able to “intervene early” and take “corrective measures in a timely manner” to ensure a failing bank’s health did not deteriorate further.

The PCA framework allows supervisors to force banks

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