Module: General Practice
Q26: Scenario: An SME borrower's loan account has its Principal/Interest overdue for 65 days.
Question: As per the RBI's SMA (Special Mention Account) norms, how should this account be classified?
✅ Correct Answer: C
The SMA scale is as follows: SMA-0 covers accounts not overdue for more than 30 days but showing signs of stress.
SMA-1 covers accounts overdue for 31 to 60 days.
SMA-2 covers accounts overdue for 61 to 90 days.
NPA covers accounts overdue for more than 90 days.
Since the overdue period here is 65 days, it falls squarely in the SMA-2 bucket.
This is the critical trigger for initiating a Corrective Action Plan (CAP).
SMA-1 covers accounts overdue for 31 to 60 days.
SMA-2 covers accounts overdue for 61 to 90 days.
NPA covers accounts overdue for more than 90 days.
Since the overdue period here is 65 days, it falls squarely in the SMA-2 bucket.
This is the critical trigger for initiating a Corrective Action Plan (CAP).