Q. What does GRAF stand for in the context of PSBs and the BBB?- Published on 17 Apr 17a. Governance, Recognition and Accountability Framework
b. Governance, Reward and Accountability Framework
c. Governance, Redemption and Accountability Framework
d. None of the above
ANSWER: Governance, Reward and Accountability Framework
To prime public sector banks (PSBs) to hold their own against nifty private sector rivals and also prepare them for possible mergers in the future, GRAF has been proposed.
The Bank Boards Bureau (BBB) has drawn up an elaborate Governance, Reward and Accountability Framework (GRAF).
The GRAF seeks to ensure that corporate governance at PSBs is in keeping with various pieces of legislation, including the Companies Act, 2013, Banking Regulation Act, 1949, and Securities and Exchange Board of India (listing obligations and disclosure requirements) Regulations, 2015.
RBI issues provisions: Know More- The Reserve Bank of India (RBI) has issued a new set of enabling provisions to resolve the problem of banks’ mounting non-performing assets (NPAs), or bad loans.
- Through the notification titled “Revised Prompt Corrective Action (PCA) framework for banks. The new set of provisions, effective from April 1, override the existing PCA framework, and are based on the financials of each bank as of March 2017.
- The new framework will be reviewed after three years.
