Govt to consider PSBs' demand to relax PCA framework for banking system

The Union government on Tuesday said it will consider demands from public sector banks (PSB) to approach the Reserve Bank of India (RBI) on relaxing the Prompt Corrective Action (PCA) framework for the banking system in the country.

Finance Minister Arun Jaitley held the annual performance review meeting of PSBs on Tuesday and discussed wide-ranging issues, including the need for early capitalisation of banks this fiscal year.

“Bankers have certain expectations which I have told them we will consider. Some of them (banks) mentioned that the PCA guidelines should be revisited as they are indirectly affecting their lending ability. The