RBI issues prompt corrective action framework for UCBs

The RBI introduced a prompt corrective action framework for urban cooperative banks to allow timely supervisory intervention. Effective from April 1, 2025, the framework aims to restore UCBs' financial health by replacing the Supervisory Action Framework. Capital, asset quality, and profitability are key focus areas, with flexibility based on specific risks. Applicable to all but Tier 1 UCBs.