RBI tightens rules for regulatory action on banks
Friday, April 14, 2017, 5:57 PM
The RBI has tightened the rules that trigger regulatory action on lenders when they fall short of capital or exceed bad loan limits. Under the revised rules, as many as 16 banks could face RBI intervention if their December quarter numbers are considered. RBI’s so-called prompt corrective action framework, banks are assessed on three parameters: capital ratios, asset quality, and profitability.