Govt to consider public sector banks demand for PCA relaxation

The Central government said it will consider demands from PSB to approach RBI on relaxing the Prompt Corrective Action framework for the banking system in the country.

Finance Minister Arun Jaitley held the annual performance review meeting of PSBs 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 government be more upfront in capital requirement of some of these banks,” Jaitley said, after a day-long review meeting.

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