Explanation:

Let’s break down the SMA (Special Mention Account) categories as per RBI’s Prudential Framework for Resolution of Stressed Assets:

- SMA-0: This is for accounts overdue for 1-30 days.

- SMA-1: This covers accounts that are overdue for 31-60 days.

- SMA-2: These are overdue for 61-90 days.

Now, to look at the options:

- Option 1 (121-180 days): That’s way beyond SMA-2 and actually classified as an NPA (Non-Performing Asset).

- Option 2 (61-90 days): That’s SMA-2.

- Option 3 (1-30 days): That’s SMA-0.

- Option 4 (31-60 days): That’s SMA-1.

- Option 5 (91-120 days): Also falls under NPA, not SMA.

So, your pick—option 4, 31-60 days—is exactly right for SMA-1.