Second Covid wave: Auto-debit payment bounce rate increases again in April

Experts say the rise may continue, given the lockdowns

The second wave of the pandemic and the localised lockdowns have led to the problem of failure in auto-debit transactions surfacing again in April.
 
According to the National Automated Clearing House (NACH) data, in April 34.05 per cent of auto-debit transactions in volume terms failed compared to 32.76 per cent in March — the lowest after February 2020.
 
In absolute terms, in April of the 85.4 million auto-debit transactions initiated, 56.3 million were successful, while 29.08 million failed. Since December, the share of unsuccessful auto-debit requests had been declining steadily, indicating higher regularity in equated monthly instalments (EMIs),