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Generate QuizUnder the RBI's Prompt Corrective Action (PCA) framework, which of the following is NOT a primary trigger point for invoking restrictions on a bank?
- Capital to Risk-Weighted Assets Ratio (CRAR)
- Net Non-Performing Assets (NPA)
- Return on Assets (ROA)
- Total volume of digital transactions processed
Answer: Total volume of digital transactions processed
The PCA framework is strictly focused on the financial health and solvency of the bank. The three core trigger parameters are CRAR (capital adequacy), Net NPA (asset quality), and ROA (profitability). A low volume of digital transactions might indicate poor market penetration or technological lag, but it does not threaten the bank's survival or trigger regulatory intervention under PCA.