MSMEs urge FM Nirmala Sitharaman to review NPA classification norms

In its suggestions to the finance ministry, the Federation of Indian Micro, Small and Medium Enterprises has said the greatest need that has emerged is the flexibility in assigning NPAs

Stung by the second wave of the Covid-19 pandemic, small businesses have urged Finance Minister Nirmala Sitharaman to review classification norms for bad loans and rationalise import duty on key raw materials such as iron and steel.
 
The Federation of Indian Micro, Small and Medium Enterprises (FISME) in its suggestions to the finance ministry has said that “more than the requirement of additional funds, the greatest need that has emerged is the flexibility in assigning non-performing assets (NPAs)”.
 
The industry body has said the framework to classify accounts under Special Mention Account (SMA) framework has been devised for