As businesses set up online modes, cash flows become less prone to turmoil

Collection ratios in securitised pools have not dipped much during the second wave of the Covid-19 pandemic. According to Crisil, this is because localised restrictions limited the impact on business activity; and the lack of moratorium from lenders meant that borrowers could not postpone their debt repayments.

Non-banking financial companies have been also reworking their collection process since the onset of the pandemic by increasingly adopting electronic modes such as auto-debit, payment gateways and dedicated applications. As more businesses set up online modes for business continuity, their cash flows become less prone to disruption.