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      Question

      In credit monitoring, what does 'SMA-2' classification

      imply regarding a loan account? 
      A Principal or interest payment is overdue between 1–30 days. Correct Answer Incorrect Answer
      B Principal or interest payment is overdue between 31–60 days. Correct Answer Incorrect Answer
      C Principal or interest payment is overdue between 61–90 days. Correct Answer Incorrect Answer
      D The account has remained an NPA for 12 months. Correct Answer Incorrect Answer
      E The account is showing signs of incipient stress but no overdues. Correct Answer Incorrect Answer

      Solution

      Special Mention Accounts (SMA) are categorized to identify stress early: SMA-0 (1–30 days), SMA-1 (31–60 days), and SMA-2 (61–90 days). Once it crosses 90 days, it becomes an NPA.

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