Govt to push RBI for exit mechanism from prompt corrective action for banks

The Centre will continue to push the Reserve Bank of India (RBI) for an exit mechanism from prompt corrective action (PCA) for banks even as it decided to pump additional capital into some public sector banks (PSBs) to help improve conditions.

The government’s move to inject an additional Rs 410 billion into PSBs will be done in tranches starting this month, a senior finance ministry official said on Friday.

The Centre will prioritise recapitalising banks, such as Bank of India, Allahabad Bank, Central Bank of India, Oriental Bank of Commerce and Bank of Maharashtra, among others, seen as possible candidates by the