RBI frees Bank of India, Oriental Bank, BoM from From PCA Framework

Reserve Bank of India
Reserve Bank of India (RBI)

New Delhi, Jan 31 : Three public sector lenders have been permitted to exit the Reserve Bank of India’s prompt corrective action framework.

The RBI has decided to take Bank of India (BoI) and Bank of Maharashtra (BoM) out of the Prompt Corrective Action (PCA) framework following improvements in their capital position and asset quality in the December 2018 quarter.

The three lenders were part of eleven government owned banks put under the framework in 2017 and 2018.The move will remove the constraints placed on these public sector banks (PSBs) in terms of lending and undertaking branch expansion.

The RBI has also decided to remove the restrictions placed on Oriental Bank of Commerce (OBC) subject to certain conditions and close monitoring.

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