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The Reserve Bank of India (RBI) has issued a notification extending the Prompt Corrective Action (PCA) Framework, originally introduced for Non-Banking Financial Companies (NBFCs) on December 14, 2021, to Government NBFCs. This extension will come into effect from October 1, 2024, and would be based on the audited financials of these NBFCs as on March 31, 2024, or thereafter.
In conclusion, RBI’s decision to extend the PCA Framework to Government NBFCs signifies its commitment to fostering a robust, transparent, and resilient financial ecosystem in the country.
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