Reserve Bank of India (RBI) has issued Prompt Corrective Action (PCA) framework for Primary (Urban) Co-operative Banks (UCBs). What is Prompt Corrective Action (PCA) framework? Prompt Corrective Action (PCA) framework enables supervisory intervention at an appropriate time and requires the Primary (Urban) Co-operative Banks (UCBs) to initiate and implement remedial measures in a timely manner, to restore their financial health. To which UCBs is the PCA framework applicable? The PCA framework shall be applicable to all UCBs under Tier 2, Tier 3 and Tier 4 categories except UCBs under All Inclusive Directions (AID). The PCA framework will replace the existing Supervisory Action Framework (SAF) and will be effective from April 01, 2025. How are UCBs categorized? UCBs have been categorized into – Tier 1 - All unit UCBs and salary earners’ UCBs (irrespective of deposit size), and all other UCBs having deposits up to ₹100 crore Tier 2 - UCBs with deposits more than ₹100 crore and ...