Understanding CMA Reports: Why They Matter For Loans

Introduction: The Credit Monitoring Arrangement (CMA) has been effective since October 1988, replacing the Credit Authorisation Scheme (CAS) that the Reserve Bank of India (RBI) used from 1965 to 1988 for regulating bank credit. Originally, the CAS required prior RBI approval for credits exceeding certain limits to prevent large borrowers from misallocating resources.