In May 2018, which one of the following banks was restricted from givi

In May 2018, which one of the following banks was restricted from giving fresh credit and new recruitment of staff by the Reserve Bank of India?

[amp_mcq option1=”Punjab National Bank” option2=”Dena Bank” option3=”Central Bank of India” option4=”Bandhan Bank” correct=”option2″]

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UPSC CAPF – 2018

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In May 2018, the Reserve Bank of India (RBI) placed Dena Bank under its Prompt Corrective Action (PCA) framework, which included restrictions on lending, recruitment, and branch expansion.

The Prompt Corrective Action (PCA) framework is a supervisory tool used by the RBI to monitor financially weak banks. Banks under PCA face restrictions aimed at improving their financial health.

Dena Bank was one of several public sector banks placed under the PCA framework by the RBI due to high levels of bad loans and inadequate capital. Dena Bank was later merged with Bank of Baroda and Vijaya Bank effective April 1, 2019.

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