SMA-0

SMA-0 Definition: SMA-0 (Special Mention Account - 0) is an RBI classification for loan accounts showing early signs of stress. An account is marked as SMA-0 when the principal or interest payment is overdue between 1 and 30 days.

Why it matters in Debt Collection

• Acts as the very first early warning signal for banks and NBFCs.
• Intervention using gentle digital nudges (WhatsApp/AI Voice) yields up to 90% recovery rates here.
• Failing to collect at SMA-0 greatly increases the mathematical probability of the account becoming a full NPA.