An RBI framework to restore the financial health of weak banks by imposing restrictions on dividend distribution, branch expansion, and management compensation when banks breach threshold levels of NPA, CAR, or leverage ratio.
Last updated: 17 May 2026
An RBI framework to restore the financial health of weak banks by imposing restrictions on dividend distribution, branch expansion, and management compensation when banks breach threshold levels of NPA, CAR, or leverage ratio.
Prompt Corrective Action is significant under RBI because An RBI framework to restore the financial health of weak banks by imposing restrictions on dividend distribution, branch expansion, and management compensation when banks breach threshold levels of NPA, CAR, or leverage ratio.
Prompt Corrective Action under RBI applies to companies, professionals, and individuals involved in RBI-related compliance and regulatory matters in India. Specifically: An RBI framework to restore the financial health of weak banks by imposing restrictions on dividend distribution, branch expansion, and management com...