Reserve Bank of India issued guidelines titled “Framework for Revitalizing Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)” for the classification of defaulting large borrower’s accounts as Special Mention Accounts (SMA) and the subsequent corrective actions.


  • As per the guidelines, details of customers who have been identified as SMA-2 by any bank, as per business rules prescribed by Reserve Bank of India, are required to be communicated to RBI on weekly basis. RBI in turn intimates all the banks which have exposure to such customers.
  • On identification of a customer as SMA2, a consortium leader and the other participating Banks are expected to implement the process of addressing the liquidation of the default as per RBI guidelines. They are expected also to monitor the progress of the process in a strict time bound manner so that asset quality of participating banks is maintained in good shape by initiating corrective measures, collectively and control slippage of high value exposures into NPAs.
  • CRisMac SMA 2 Tracking Module provides for Banks to strengthen the monitoring functionalities, as well as implement follow-up of such borrowal accounts as per the directions of the RBI.