Govt expands ambit of ECLGS 2.0

Expanding the scope of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0, the government has said that Special Mention Accounts-1 (SMA) will now be eligible for credit under the scheme. “Scope of ECLGS 2.0 expanded! SMA-1 borrowers in the healthcare sector and 26 other high stress sectors (as identified by the Kamath Committee) are now eligible under ECLGS 2.0,” the Department of Financial Services (DFS) said in a tweet.

Special Mention Account (SMA) is an account which is exhibiting signs of incipient stress resulting in the borrower defaulting in timely servicing of his/her debt obligations, though the account has not yet been classified as an NPA as per RBI guidelines. In the case of SMA-1, the overdue period is between 31 to 60 days.