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RBI’s Transition of Urban Co-operative Banks (UCBs) to the PCA Framework

RBI’s Transition of Urban Co-operative Banks (UCBs) to the PCA Framework:

The Reserve Bank of India (RBI) will transition approximately 500 financially weak Urban Co-operative Banks (UCBs) from the Supervisory Action Framework (SAF) to the Prompt Corrective Action (PCA) framework starting April 1, 2025. This move aims to strengthen regulatory oversight and ensure timely remedial action to restore the financial health of these institutions. The PCA framework provides early supervisory intervention while maintaining financial stability.