SMA-1

SMA-1 Definition: SMA-1 is the second stage of specialized monitoring under RBI guidelines where a borrower's principal or interest remains overdue for between 31 to 60 days.

Why it matters in Debt Collection

• Requires an escalated collection intensity compared to SMA-0.
• NBFCs typically deploy human telecallers or early physical field visits at this stage.
• Asset deterioration risks rise sharply; proactive restructuring may be considered to prevent SMA-2 migration.