Small-scale spinning mills have got relaxation in NPA classification from the Reserve Bank of India (RBI) following its recent circular that micro, small and medium-scale enterprises (MSMEs) registered under Goods and Services Tax will be classified as standard asset and not as Non-Performing Asset provided the unit meets specific stipulations. The RBI has said that banks and non-banking financial companies generally classify a loan account as NPA based on 90 days to120 days delinquency norms. With implementation of GST, small entities have faced problems related to cash flow during the transition phase and were unable to meet the loan repayment obligations. To support these entities, the RBI has decided that MSMEs will be classified as standard asset and not NPA if they have registered with GST, the borrower account was standard as on August 31 last year, the aggregate exposure to be borrower does not exceed Rs. 25 crore, etc. S.K. Ranagarajan, president of the South India Spinners’ Association, said in a release that the association had been seeking relaxation in NPA norms. Its representatives had met Ministers and RBI officials to seek moratorium to the small spinners. “This is a much-needed relief to the business units operating under the MSME category,” he said.