RBI imposes banking business restrictions on Oriental Bank of Commerce

On October 5, 2017, Reserve Bank of India (RBI) imposed certain restriction on banking activities of Oriental Bank of Commerce. RBI initiated prompt corrective action (PCA) against OBC in view of high non-performing assets. Owing to PCA, OBC will face restrictions in terms of opening new branches, hiring staff and lending to sub-investment grade companies. However, it has been permitted to continue accepting deposits and give small ticket loans. It is to be noted that, since March 2017, RBI has placed similar restrictions on six other banks which include Dena Bank, Central Bank of India, IDBI Bank, Indian Overseas Bank, Bank of Maharashtra and UCO Bank.