Centre to infuse funds into banks under PCA

Why is it in news?
  • The Finance Ministry is likely to decide on infusion of ₹14,500 crore mainly in banks that are under the RBI’s prompt corrective action (PCA) framework.
  • Objective behind the capital infusion is to improve financial health of the banks under stress.
  • The infusion will be made in the next few days.
  • The capital infusion will help these banks to come out of the RBI’s enhanced regulatory supervision.
  • The biggest beneficiary of this round of capital infusion would be the banks that are under the PCA framework.
  • For the current financial year, the government had allocated ₹20,000 crore for capital infusion into PSBs.
Source: The Hindu.

Posted by Jawwad Kazi on 13th Mar 2021