Centre may ask RBI to ease prompt corrective action framework

Government to ensure adequate working capital and credit for MSMEs

The Centre may ask the Reserve Bank of India (RBI) to consider revising the prompt corrective action (PCA) framework so that a complete restriction on fresh lending does not affect credit flow to business, particularly small and medium enterprises.

Piyush Goyal, who recently assumed charge as finance minister till Arun Jaitley recovers from an operation, held a review meeting with the top management of 11 public sector banks under the PCA framework on Thursday. Officials of the department of financial services also held a one-on-one meeting with the executives of the banks to take stock of their plans.

“The RBI