Strong recovery seen as bounce rates ease further in Feb; lowest in 32 mths

According to NACH data, the metric improved by 100 bps by value over Jan, to 22.4%. By volume, it stood at 29.2%, an improvement of 40 bps over Jan

After staving off the impact of the third wave of the pandemic in January, bounce rates eased further in February, indicating a strong recovery in the economy and further improvement in the asset quality of lenders.

According to National Automated Clearing House (NACH) data, the bounce rate in value terms in February improved by 100 basis points over January to stand at 22.4 per cent, the lowest since May 2019. And, in volume terms, the bounce rate in February stood at 29.2 per cent, an improvement of 40 bps over January. These bounce rates were lower than the levels seen