The PCA is essentially meant to have a bank focus on their recovery of

bad loans. And despite going under the PCA, there is no restriction on
taking deposits or giving out loans for these banks. There is no
discussion of any permanent shut down of these banks.

Additionally, a recent report states that a number of public sector

banks are to go under a merger or consolidation with other stronger
PSU Banks, similar to the recently concluded SBI associate banks
merger. The governments objective is to reduce the 21 PSU banks to

According to reports, six banks were placed under PCA Central Bank
of India, IDBI Bank, UCO Bank, Dena Bank, Bank of Maharashtra and
Indian Overseas Bank.

A report published by the ICRA in May estimated that 16

public sector banks out of 21 (excluding State Bank of
India associates) would need to initiate mandatory
corrective actions under the RBIs PCA framework.
The NPA crisis Indian banks are grappling with is real and the solution
to it will be difficult but we havent reached a state where we have to
immediately withdraw our money or lose it all.