CMA means Credit Monitoring Arrangements.

This full form of

CMA is as given by Reserve Bank of India. For arranging
working capital finance information about income, expenses,
assets & liabilities is required to be given in a specific
format to the bank by applicant. This specific format is
referred to as CMA Report / CMA Data. Audited P & L A/c &
Balance Sheet of at least last 1 year, estimates of current
year & projections of next at least 2 years are provided to
bank by the applicant along with Funds Flow Statement,
Ratio Analysis, Comparative Statement of Current Assets &
Current Liabilites & Statement of Maximum Permissible Bank
Finance. Number of years for which data is required may
vary from bank to bank. Even after getting the finance such
data is required to be submitted to the bank periodically.

RBI introduced Credit Monitoring Arrangement (CMA) after

discontinuing Credit Authorisation Scheme (CAS) in 1988.
Under CMA system, RBI prescribed two sets of formats viz
(i) Assessment of working capital requirements and (ii)
Monitoring through Quarterly Information System (QIS), to
cover borrowers i.e. ‘General Category’ and ‘Traders &
Merchant Exporters’. The Credit Monitoring Arrangement
(CMA) under which banks were required to report to RBI the
details of credit facilities sanctioned to large borrowers
from the banking system for post sanction scrutiny was also
discontinued in December 1997 and in lieu thereof a new
reporting system was put in its place.

Where assessment of working capital limits is done as per

Simplified Turnover method (Nayak Committee), information
on Credit Monitoring Arrangement (CMA) data base forms is
not required.In order to avoid unnecessary paper work which
causes delay in sanction of credit facilities including
SMEs, it is required that where assessment of working
capital limits is done as per Simplified Turnover method
(Nayak Committee), information on Credit Monitoring
Arrangement (CMA) data base forms shall not be obtained.