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CEA pitches for MSME-specific approach to NPA classification norms
BusinessLine·October 9, 2026·1 min read
AI Summary
The Chief Economic Adviser advocates for tailored Non-Performing Asset classification standards specifically designed for micro, small, and medium enterprises. The Finance Ministry supports this review, recognizing that MSMEs have distinct working capital requirements and cash flow patterns that differ from larger businesses.
From the source
From a policy perspective, the Finance Ministry backs reviewing the norms, noting MSMEs’ varying working-capital needs and cash-flow cycles
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