RBI had taken three more banks out of its Prompt & Corrective Action (PCA) framework in January 2019. The PCA had initially covered 11 state-run banks due to their declining capital, rising bad assets and mounting losses. This action was followed up with the announcement of capital infusion in a dozen banks.

Sakshi Batra does a 3 point analysis to find out whether the decision has been taken by the RBI in haste and does it lead to more risks?