CEA Urges MSME-Specific NPA Rules as Government Reconsiders Classification Norms
India’s Chief Economic Adviser has called for a differentiated approach to non-performing asset classification for micro, small and medium enterprises, arguing that uniform rules can misread the sector’s uneven cash flows and working-capital cycles. The Finance Ministry, according to policy signals, is open to reviewing the framework as part of a broader effort to align bank regulation with the realities of MSME lending.
