The Receivable Management Glossary
Your comprehensive dictionary for debt collection, NPA management, and RBI compliance terminology in India.
SMA-0
Special Mention Account 0: Principal or interest payment is overdue between 1-30 days.
SMA-1
Special Mention Account 1: Principal or interest payment is overdue between 31-60 days.
SMA-2
Special Mention Account 2: Principal or interest payment is overdue between 61-90 days.
Non-Performing Asset (NPA)
A loan or advance for which the principal or interest payment remained overdue for a period of 90 days.
Gross NPA
The absolute total of all loan assets that have gone bad or haven't been repaid within the 90-day period.
Net NPA
Gross NPAs minus the provisions (capital set aside) made by the bank to cover those bad loans.
Bucket Migration
The movement of a delinquent account from one aging bracket (e.g., 30 days) to a worse one (e.g., 60 days).
SARFAESI Act
Allows secured creditors to recover NPAs without court intervention by seizing collateral.
Section 138 (NI Act)
Provision addressing the dishonour of cheques or NACH mandates for insufficiency of funds.
Debt Recovery Tribunal (DRT)
Specialized tribunals established to facilitate fast-track recovery of debts for banks.
Arbitration
An alternative dispute resolution method outside courts, bound by an appointed arbitrator.
Asset Reconstruction Company (ARC)
Specialized financial institutions that buy NPAs from banks at a mutually agreed price.
Insolvency and Bankruptcy Code (IBC)
A comprehensive Indian bankruptcy law consolidating rules for resolving corporate insolvencies.
MSME Samadhaan
A portal facilitating the monitoring of delayed payment complaints from MSMEs.
Lok Adalat
A people's court utilized by banks for amicable settlement of NPAs outside formal litigation.
Garnishee Order
A court order directing a third party to hold funds on behalf of a debtor.
Dunning
The methodical process of communicating with customers to ensure the collection of overdue payments.
Days Past Due (DPD)
The total number of days a payment has been overdue.
One Time Settlement (OTS)
A compromise settlement between the lender and borrower to close an NPA at a discounted amount.
Skip Tracing
The process of locating a defaulter who has absconded or broken all contact.
Collection Efficiency
A percentage measuring the amount collected against the total amount billed or due.
Propensity to Pay (PTP)
An AI-driven probability score indicating how likely a delinquent borrower is to pay.
Account Aggregator (AA)
An RBI-regulated framework allowing secure, consent-based digital sharing of financial data.
Interactive Voice Response (IVR)
Automated telephony system that interacts with human callers and gathers information.
Dialer Drop Rate
The percentage of outbound calls that connect to the borrower but disconnect before an agent speaks.