Current Affairs - Banking - Discussion

Reserve Bank of India (RBI) has placed additional restrictions on Allahabad Bank, which is under prompt corrective action (PCA) since January 2018. RBI has debarred Allahabad bank from high-risk lending and has advised to reduce exposure to unrated and high-risk advances. Allahabad Bank has also been restricted by RBI from creating non-banking assets and accessing or renewing wholesale or costly deposits or certificate of deposits. These actions have been suggested by RBI by considering Allahabad Bank's Capital to Risk (Weighted) Assets Ratio (CRAR) and leverage ratio positions. Allahabad Bank is the second lender (after Dena Bank) among the 11 banks under prompt corrective action (PCA) that has been restricted by the RBI from lending to risky assets.