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“Non-Performing Asset (NPA)” A loan account is tagged as Non-Performing Asset (NPA) if the instalment demand remains overdue/unpaid for more than 90 days.
 “Special Mention Accounts (SMA)” is an account which is exhibiting signs of incipient stress resulting in the borrower defaulting in timely servicing of his/her debt obligations, though the account has not yet been classified as NPA as per the extant RBI guidelines. Categories for SMA classification is as below:
SMA Sub Categories Basis for classification
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
Upgradation of loan accounts classified as NPAs

The loan accounts classified as NPAs may be upgraded as ‘standard’ asset only if entire arrears of interest and principal are paid by the borrower. In case of borrowers having more than one credit facility, loan accounts shall be upgraded from NPA to standard asset category only upon repayment of entire arrears of interest and principal pertaining to all the credit facilities.
Examples of Special Mention Accounts (SMA)/Non-Performing Assets (NPA):

If the due date of a loan account is 5 January 22, and full dues are not received before the day-end process for this date, the date of overdue shall be 5 January 22. If it continues to remain overdue, then this account shall get tagged as SMA-1 upon running the day-end process on 4 February 22 i.e., upon completion of 30 days of being continuously overdue. Accordingly, the date of SMA-1 classification for that account shall be 4 February 22. Similarly, if the account continues to remain overdue, it shall get tagged as SMA-2 upon running day-end process on 6 March 22 and if it continues to remain overdue further, it shall get classified as NPA upon running day-end process on 5 April 22.