Auto debit payment failure rates fall further to the previous level of corona
MUMBAI: Failure to auto debit payments has seen a sharp decline in October. Failure to request an auto debit through the National Automated Clearing House has led to a decline in both value and volume to the previous level of Corona. The report confirms lenders' claims that recovery capacity has increased over the past few months. According to data from the National Automated Clearing House, of the 3.7 crore transactions conducted in October, 2.50 crore or 21.5 per cent were unsuccessful while 4.5 crore transactions were successful. In terms of value, 6.5 per cent of transactions undertaken failed, the lowest since January 2020. Failure to request an auto debit through the National Automated Clearing House is commonly referred to as a bounce rate. This is an indication that the recovery trend seen by most banks in recovery in the second quarter of FY40 will continue in October, an analyst said. These bounce rates are at the levels seen in the months before the Corona of Janua