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Credit Control and Monitoring
What is the SMA-0 classification for non-agricultural cash credit/overdraft accounts as per RBI norms?
SMA-0 applies when the outstanding balance remains continuously in excess of the sanctioned limit or drawing power for 1 to 30 days.
What is the maximum age of book debts typically considered eligible for Drawing Power computation in a cash credit account?
Book debts up to 90 days (some banks use 120 days) are eligible for Drawing Power computation.
What is the SMA-1 classification for non-agricultural cash credit/overdraft accounts as per RBI norms?
SMA-1 applies when the outstanding balance remains continuously in excess of the sanctioned limit or drawing power for 31 to 60 days.
What is the typical margin applied on eligible book debts for Drawing Power computation?
Typically 25–40% margin is applied on eligible book debts; net DP = book debts × (100% – margin%).
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