Second wave impact: Auto debit payment bounce rate increases further in May

The unsuccessful auto-debit requests through the NACH platform are generally referred to as bounce rates

Auto-debit payment bounces have gone up for the second consecutive month in May, emphasising the stress building up due to a halt in economic activities as authorities lock down various parts of the country to stop the spread of the virus in the second wave.
 
According to the National Automated Clearing House (NACH) data, in May, of the 85.7 million transactions initiated, 35.91 per cent, or 30.8 million transactions, failed.
 
In April, of the 85.4-million auto-debit transactions initiated, 56.3 million were successful, while 29.08 million failed, which make up for 34.05 per cent of the total transactions.