Asset Classification
Classification as per RBI Circular No. DOR.CRE.REC.No.60/03.10.001/2021-2022 dated October 22,2021 on ‘Scale Based Regulation (SBR):A revised Regulatory Framework for NBFC’s.
Special Mention Account (SMA) and Non-Performing Asset (NPA) categories are as follows:
SMA Sub categories | Basis for classification of principal or interest payment or any other amount wholly or partly overdue |
SMA-0 | Upto 30 days |
SMA-1 | More than 30 days and upto 60 days |
SMA – 2 | More than 60 days and upto 90 days |
Above 90 Days | NPA |
After NPA date upto 12 months | Sub-standard assets |
After NPA date exceeding 12 Months | Doubtful Assets |
(i) an asset which has been identified as loss asset by the (NBFC or its internal or external auditor or by the Reserve Bank during the inspection of the NBFC, to the extent it is not written off by the NBFC; and (ii) an asset which is adversely affected by a potential threat of non-recoverability due to either erosion in the value of security or non-availability of security or due to any fraudulent act or omission on the part of the borrower. | Loss Assets |