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RBI may blink on PCA but not on NBFC window in today's board meet: report

RBI may blink on PCA but not on NBFC window in today's board meet: report

RBI may blink on PCA but not on NBFC window in today's board meet: report
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By CNBC-TV18 Nov 19, 2018 10:10:16 AM IST (Published)

The Reserve Bank of India may agree to bring some public sector banks (PSBs) out of the prompt corrective action (PCA) framework in the upcoming board meeting, reported Business Standard.

The Reserve Bank of India may agree to bring some public sector banks (PSBs) out of the prompt corrective action (PCA) framework in the upcoming board meeting, reported Business Standard.

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However, it is unlikely that the central bank will accede to the government’s demand to set up a special refinance window for non-banking financial companies (NBFCs), the report said citing sources privy to the discussions.
Some of the banks will be brought out of the PCA framework if the government agrees to the central bank’s terms related to fulfilling their capital needs, the report said.
The development, as per the report, could impact the 11 PSBs that currently come under PCA and have collectively posted a net loss of over Rs 10,000 crore in Q2.
However, the report added that the RBI is unlikely to make such arrangements when it comes to giving a special refinance window for NBFCs.
 
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