RBI Circular: Customer Education Regarding Asset Classification.pdf

prudential-RBI-norms-customer-education-regarding-asset-classification.pdf
Preview of RBI Circular: Customer Education Regarding Asset Classification
🔗 Source: dbs.com
📊 Size: 274 KB
👤 Author: Paaras SATTI
⬇️ Downloads: 52

Summary

Key points include:
1. 'Dues' refer to principal, interest, or charges payable within a stipulated period.
2. 'Overdues' are amounts payable but not paid within the stipulated period.
3. A 'Stressed account' is one where EMI/installment/interest dues are not paid on or before the due date.
4. A 'Special Mention Account (SMA)' is a loan account showing symptoms of stress, with principal or interest overdue for less than 90 days.
5. SMA categorization is a precautionary measure to recognize financial stress early and take corrective action.
6. Classification as SMA or Non-Performing Asset (NPA) is based on the type of loan and overdue period.
7. An NPA is a loan or advance with interest/installment overdue for more than 90 days.
8. Illustrations are provided for the movement of an account from SMA to NPA category for term loans and credit cards based on non-payment of dues.

Description

Key points include:
1. 'Dues' refer to principal, interest, or charges payable within a stipulated period.
2.

Technical Information

  • File Format: PDF
  • File Size: 274 KB
  • Pages: 5
  • Language: EN
  • Author: Paaras SATTI
  • Total Downloads: 52
  • Last Updated: 2 months ago

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