Auto debit bounce rates drop further in October to touch pre-Covid levels

NACH data shows that of 86.6 mn transactions in October, 27 mn or 31.24% failed while 59.52 mn went through; In value terms, 24.83% of the transactions declined in October, lowest since Jan 2020

Auto-debit payment bounces have come down further in October, with value and volume of unsuccessful auto-debit requests through the National Automated Clearing House (NACH) reaching pre-Covid levels. This validates claims made by lenders regarding significant improvement in collection recoveries they have seen in the past few months.

According to the NACH data, in October, of the 86.6 million transactions initiated, 27 million transactions, or 31.24 per cent, failed, while 59.52 million were successful.

In value terms, 24.83 per cent of the transactions declined in October — the lowest since January 2020. In September, bounce rates stood at 31.7 per cent