---
title: "Prompt Corrective Action (PCA) Framework Explained"
description: "Prompt Corrective Action is the RBI's graded supervisory regime that curbs weak banks via three risk thresholds—see how it differs from outright resolution."
url: "https://modeldiplomat.com/learn/glossary/prompt-corrective-action-framework"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Prompt Corrective Action is a supervisory framework under which the Reserve Bank of India imposes graded restrictions on banks that breach thresholds for capital, asset quality, and leverage.
- What are the three parameters under the 2022 PCA Framework?
- How does PCA differ from resolution under the Insolvency and Bankruptcy Code?
- Which banks were placed under PCA after the 2017 revision?
- Does the PCA Framework apply to NBFCs?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 13 April 2017

   The framework was comprehensively revised on following the asset-quality review, again amended in 2018, and re-issued as a revised PCA Framework effective 1…

2. 1 January 2022

   The framework was comprehensively revised on 13 April 2017 following the asset-quality review, again amended in 2018, and re-issued as a revised PCA Framewor…

3. 1 October 2022

   A separate PCA framework for Non-Banking Financial Companies was notified in December 2021, effective .

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Example

In September 2022 the Reserve Bank of India removed Central Bank of India from the Prompt Corrective Action Framework, ending the regime for India's last public-sector bank under restriction after capital and asset-quality metrics improved.

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