What is special mention account in cibil?

Special Mention Account (SMA): Special account created for reporting Standard Accounts moving toward Sub-Standard. Sub-Standard (SUB): Payments being made after 90 days. Doubtful (DBT): The account has remained Sub-Standard for 12 months. Loss (LSS): An account where loss has been identified and remains uncollectible.

What is SMA list?

The Special Mention Account identification is an effort for early stress discovery of bank loans. It was introduced as a corrective action plan to contain stress. As per the SMA regulations, banks should identify potential stress in the account by creating a new sub-asset category viz.

How many sub categories are there in special mention account?

four types
There are four types of Special Mention Accounts – SMA-NF, SMA 0, SMA1, and SMA 2. The Special Mention Accounts are usually categorized in terms of duration.

What SMA means?

Spinal muscular atrophy (SMA) is a genetic (inherited) neuromuscular disease that causes muscles to become weak and waste away. People with SMA lose a specific type of nerve cell in the spinal cord (called motor neurons) that control muscle movement. The word atrophy is a medical term that means smaller.

How many sub categories are there in special mention accounts SMA )?

What are the different types of special mention accounts?

There are four types of Special Mention Accounts – SMA-NF, SMA 0, SMA1 and SMA 2. The Special Mention Accounts are usually categorized in terms of duration. For example, in the case of SMA -1, the overdue period is between 31 to 60 days. On the other hand, an overdue between 61 to 90 days will make an asset SMA -2.

What is special mention account identification (SMA)?

The Special Mention Account identification is an effort for early stress discovery of bank loans. It was introduced as a corrective action plan to contain stress. As per the SMA regulations, banks should identify potential stress in the account by creating a new sub-asset category viz. ‘Special Mention Accounts’ (SMA).

What is ‘Special Mention’ category of assets?

Thus, ‘Special Mention’ category of assets are considered not only on the basis of non-repayment or overdue position of the loan accounts, but also due to other factors that reflect potential sickness/irregularities in the account (SMA -NF). These are called in banking parlance, “Early Warning Signals (EWS)”

What are the special mention accounts under NPA?

According to RBI recent amendments, the Special Mention Accounts are usually classified into three categories based on the terms of duration. The purpose of this classification is to help the banker to closely monitor these accounts and through proper and quick pro-active intervention prevent the loan from slipping to NPA stage at a future date.