India's chief economic adviser urges tailored bad-loan classification for micro, small and medium firms

The Economic Times reports that India's chief economic adviser, V Anantha Nageswaran, called for revisiting the Reserve Bank's non-performing asset classification rules for micro, small and medium enterprises. He said the rules should reflect their different cash-flow cycles and working-capital requirements rather than a uniform global standard. Under current rules, loan accounts are generally classified as non-performing if principal or interest remains overdue for more than 90 days. He also suggested cutting compliance costs.