Locking horns: Centre might have agreed to RBI's revised PCA framework

The RBI had proposed revising the revised PCA framework to the Ministry of Finance in September 2016

The Union government had “broadly” agreed to the Reserve Bank of India’s (RBI’s) decision to tighten the prompt corrective action (PCA) a month before it was released last year, sources in the central bank said on Tuesday.

An under secretary-level official of the Department of Financial Services (DFS) had written a letter to a chief general manager-level official of the RBI on March 3, 2017, saying the government is in “broad agreement” to the proposed changes to the PCA framework.

The RBI had released the revised PCA framework on April 13, 2017, which became one of the main areas of contention between