RBI lifts operation restrictions on three state-run banks

Banks no longer face dividend and compensation limits after capital ratios improve

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Three state-run banks have been freed from the Reserve Bank of India’s operational restrictions due to improved capital positions, the central bank announced on January 31. 

The Bank of India, Bank of Maharashtra and Oriental Bank of Commerce no longer face restrictions under the “prompt corrective action” (PCA) framework. The central bank placed the restrictions on the three banks at different times in 2017.

The PCA framework allows supervisors to force banks to raise capital, for instance by

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