What is the minimum aggregate corporate debt exposure that forces a bank to report an SMA-2 account to the central tracking database?

β˜…β˜…β˜…β˜…β˜…
Rate this: Avg 0.0 (0 votes)
Direct Answer
5 crore rupees
The 5-Crore Reporting Rule dictates the exact financial threshold that makes a corporate borrower systematically dangerous enough to require mandatory database flagging.
Step 1: Check Total Debt
Aggregate Exposure = Must exceed 5 crore rupees

Step 2: Check Time Delay
Warning Tier Hit = Must reach SMA-2 (61 days late)

Step 3: Regulatory Action
Execution = Bank forcibly reports the entity to CRILC

Exam tip: The limit applies to “aggregate exposure,” meaning the total combined money the borrower owes the bank across all active credit lines and term loans, not just the single loan that defaulted. Regulators set the limit at five crore to balance the administrative burden; tracking smaller retail loans would crash the database, so the focus remains entirely on major corporate risk.

Bank Clerk to Officer Promotion Exam

Comprehensive PDF Bundle Course πŸ“š

Course Fee: β‚Ή4,999/- Only

What's Inside the PDF Bundle?

🎯 2500+ MCQs

πŸ”Ή Phase 1: Fundamentals & Core Ops

Banking Fundamentals & RBI β€’ Deposit Accounts & Customer Ops β€’ KYC, AML & Compliance β€’ Negotiable Instruments & Banking Law β€’ Customer Service & Banking Ombudsman β€’ Digital Banking & Payment Systems β€’ Govt Schemes & Financial Inclusion

πŸ”Ή Phase 2: Lending & Credit Mgt

Loans & Advances β€’ Retail & Agriculture Banking β€’ MSME Finance β€’ Priority Sector Lending β€’ Credit Appraisal & Financial Analysis β€’ Securities & Documentation

πŸ”Ή Phase 3: Stressed Assets

IRAC, NPA & Stressed Assets β€’ Recovery of Bank Advances

πŸ”Ή Phase 4: Specialized Banking

Foreign Exchange & International Banking β€’ Treasury, Financial Markets & Investments

πŸ”Ή Phase 5: Risk & Governance

Fraud, Cyber Security & Operational Risk β€’ Risk Management & Basel Norms β€’ Audit, Inspection & Compliance β€’ Latest Banking & Regulatory Updates

Ready to crack your Exam?

Click below to message us directly on Telegram and get instant access.

πŸ›’ Buy Course via Telegram