PCA framework extended to government NBFCs

The Reserve Bank of India, on December 14, 2021, introduced the Prompt Corrective Action (PCA) Framework for Non-Banking Financial Companies (NBFCs). Following a comprehensive review, the RBI has now made a significant decision to extend the PCA Framework to Government NBFCs, excluding those in the Base Layer. This extension will come into effect from October 1, 2024, and will be based on the audited financials of the NBFCs as of March 31, 2024, or thereafter.