Auto-debit payment bounce rates in January lowest since August 2019

Despite the Omicron wave being at its peak in January, auto-debit payment bounces or bounce rate by value for the month was the lowest since August 2019 (pre-pandemic period). This indicates that asset quality of lenders has been improving steadily.

Bounce rate has been trending downwards since July 2021, as the second wave of the pandemic receded.

According to National Automated Clearing House (NACH) data, in January, the bounce rate in volume terms stood at 29.6 per cent and in value terms it was 23.4 per cent.

In December 2021, bounce rate in volume terms stood at 30 per cent