Module: General Practice
Q24: Under the "Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises" issued by the RBI, banks must identify incipient stress in MSME accounts. Which of the following correctly defines the SMA-1 (Special Mention Account-1) category?
✅ Correct Answer: B
Under the stress recognition framework, accounts are classified as:
SMA-0: Overdue for 1–30 days.
SMA-1: Principal or interest overdue between 31 and 60 days.
SMA-2: Principal or interest overdue between 61 and 90 days.
NPA: Overdue for more than 90 days.
Banks are mandated to form a Committee to resolve stress as soon as an account hits the SMA-2 stage to prevent it from becoming an NPA.
SMA-0: Overdue for 1–30 days.
SMA-1: Principal or interest overdue between 31 and 60 days.
SMA-2: Principal or interest overdue between 61 and 90 days.
NPA: Overdue for more than 90 days.
Banks are mandated to form a Committee to resolve stress as soon as an account hits the SMA-2 stage to prevent it from becoming an NPA.