New Delhi, Oct. 9 -- Chief economic adviser V. Anantha Nageswaran on Friday pitched for a review of loan-overdue regulations for micro, small and medium enterprises (MSMEs), calling for aligning them with the cash-flow cycles of these entities rather than adopting a uniform standard.

MSMEs across sectors have different working capital cycles, he said, suggesting that regulations need to be aligned with this reality.

"The moment you are classified as a Special Mention Account (SMA), you almost end up becoming de facto, if not de jure, a non-performing asset (NPA). That needs to change," Nageswaran said at an event in New Delhi, organised by Sa-Dhan, a self-regulatory body for microfinance institutions.

"We need to evolve norms consisten...