E magazine competition success review

E magazine competition success review

E magazine competition success review Published this article page no  75 STRESSED URBAN COOPERATIVE BANKS TO FACE PCALIKE CURBS Why in News? The Reserve Bank of India (RBI) has decided to revise Supervisory Action Framework (SAF) on urban cooperative banks (UCBs) for deterioration of financial position in line with the prompt corrective action (PCA) framework that is imposed on commercial banks. Revised SAF  Under this UCBs will face restrictions on worsening of 3 parameters o Net nonperforming assets exceed 6% of net advances. o Losses for two consecutive financial years or have accumulated losses on their balance sheets o Capital adequacy ratio (CAR) falls below 9%.  Action can be also taken if there are serious governance issues.  Possible restrictionsActions that can be taken by the RBI o It may seek a boardapproved proposal for merging the UCB with another bank or converting itself into a credit society if CAR falls below 9%. o It can impose restrictions on declaration or payment of dividend or donation without prior approval if any one of the risk thresholds is breached. o Some of the other curbs include restricting fresh loans and advances carrying riskweights more than 100% on incurring capital expenditure beyond a specified limit and on expansion of the balance sheet. o Actions such as issue of showcause notice for cancellation of banking licence may also be considered. For more details refer to Urban Cooperative Banks (UCB) article in October 2019 Monthly Current Affairs E magazine competition success review buy.

E magazine competition success review