New Delhi, Chief Economic Advisor V Anantha Nageswaran on Friday made a case for revisiting non-performing asset (NPA) classification norms for micro, small and medium enterprises (MSMEs) by the Reserve Bank, saying the rules should reflect domestic business practices and cash flow patterns rather than follow a globally uniform framework.
From a policy perspective, the Finance Ministry has been advocating a review of the norms, Nageswaran said, highlighting that MSMEs across sectors have different working capital requirements and cash flow cycles.
