Auto-debit bounces dip in July as financial stress eases for borrowers

In an indication of easing financial stress among borrowers, the number of unsuccessful auto-debit requests through the National Automated Clearing House (NACH) platform declined in July, reversing a three-month trend that started with the second wave of the Covid-19 pandemic.

According to the NACH data, of the 86.4-million transactions initiated in July, 33.23 per cent, or 28.7 million transactions, failed, while 57.7 million were successful. 

Compared to June, this is a significant improvement in bounce rates. In June, of a total of 87.8-million transactions initiated, over 36.5 per cent, or 32 million initiated, failed.

In May, 35.91 per cent, or