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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.
Details:
- 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.