Banking Regulation and Supervision — Mains Questions

Critically analyze the effectiveness of RBI's Prompt Corrective Action (PCA) framework in addressing the challenges faced by financially weak banks in India. What are its strengths and limitations?

Discuss the rationale behind RBI's recent digital lending guidelines. How do these guidelines aim to balance innovation in fintech with consumer protection and financial stability?

Examine the role of the Reserve Bank of India in regulating and supervising Non-Banking Financial Companies (NBFCs). In light of recent crises (e.g., IL&FS, DHFL), critically evaluate the effectiveness of the Scale-Based Regulation (SBR) framework for NBFCs.