Showing posts with label Loan Recovery. Show all posts
Showing posts with label Loan Recovery. Show all posts

Saturday, September 30, 2023

NPCI NACH – Penalty for high %age of NACH Debit Returns


NPCI NACH Team vide Cir No 24 dt August 18th 2023, introduced the Penalty Policy for high %age of NACH Debit Transaction Returns.



The circular highlights are as follows:

NPCI has informed NACH Member Banks to refer to the various communications from NPCI highlighting the elevated percentage of returns in ACH debit transactions.

In light of this, it is strongly recommended that all stakeholders proactively undertake the following measures:

01) Limit the display of returned transactions to twice, comprising one initial presentation and two subsequent representations.

 

02) The representation of a returned transaction can only take place three days after the return date.

 

03) Representation should occur only upon receiving confirmation from the respective customer regarding the availability of sufficient balance.

 

04) In the event of recurring returns:

 

a. User institutions should establish communication with the customer to ensure that the presentation resumes only after receiving confirmation to honor the debit transactions.

b. Destination banks must assess the account's operations, advise the customer to maintain an adequate balance, and, if no improvement occurs, adhere to regulatory guidelines for managing such accounts.

 

Despite issuing repeated advisories to all relevant parties, it has come to NPCI's attention that the percentage of returns remains significantly above acceptable thresholds.

 

To instill clearing discipline, the following measures will be gradually implemented according to the provided schedule:

 

Phase I With effect from 1st October 2023:

1. Additional charges of Rs. 1 per return transaction to be levied on corporate with returns above 50%.

 

 

Phase II - With effect from 1st January 2024:

1. Rs. 5 per return transaction for corporate with return above 50%. Additional Charges will be for transaction over and above the threshold ie.50%

Phase III - with effect from 1st April 2024:

1. The corporates with return transaction above 30% will be barred from registering new mandates.

2. The utility code will be barred for registering further new mandates until the returns are brought down below the 30% threshold.

 

NPCI has advised all stakeholders to take immediate remedial measures ensure adherence to the clearing discipline and reduce the returns.

 

 

 

 

The National Payments Corporation of India (NPCI) has taken a significant stride in revolutionizing electronic transactions with the introduction of the "National Automated Clearing House (NACH)."

This web-based solution has been meticulously designed to cater to a broad spectrum of stakeholders, including banks, financial institutions, corporates, and government bodies.

NACH Debit service, a critical component of NACH system, brings electronic automation to interbank high volume, low-value debit transactions.

At present, the NACH transactions can be processed on all days of the week, i.e Sundays and holidays too.

These transactions, characterized by their frequent and repetitive nature, are seamlessly processed through the NPCI platform.

This unified and standardized framework resolves bottlenecks and challenges associated with electronic transmission, both at the local and national levels, thereby contributing to the growth of core banking services.

 

One of the key functions of the NACH System is to serve as a robust platform for executing bulk transactions.

This functionality proves invaluable in scenarios such as the distribution of subsidies, dividends, interest, salary disbursements, and pensions.

Additionally, it facilitates bulk collections of payments for various utilities and financial services like telephone bills, electricity charges, water bills, loan repayments, mutual fund investments, and insurance premiums.

 

At its core, the National Automated Clearing House (NACH) represents a centralized system with a grand vision. It seeks to consolidate and harmonize the multitude of Electronic Clearing Service (ECS) systems operating throughout the country.

By doing so, it aims to establish a standardized framework and eliminate local barriers, thus promoting seamless interbank transactions. Furthermore, NACH's reach is expansive, covering the entire network of core banking-enabled bank branches across the nation, regardless of their geographic location.

 

It offers a single set of rules encompassing operational and business aspects, open standards, and industry best practices.

These provisions are designed to ensure consistency in electronic transactions for all participants, service providers, and users.

 

In addition to its overarching objectives, the NACH system empowers member banks with customization capabilities. It allows banks to design their own products and caters to specific needs through features like a refined Mandate Management System (MMS) and an online Dispute Management System (DMS). These tools are complemented by robust information exchange and customized Management Information System (MIS) capabilities.

 

Disclaimer: These are my personal views only. The bottom line is Safe ePayments.

 

 

 

 

Sunday, December 25, 2022

Are you interested to join IDFC Bank Collections Team? Go ahead NoW

 Are you interested to join IDFC Bank Collections Team? Go ahead NoW

          As of date, IDFC Bank has around 33 openings across India in their Collections Team.



They are looking for a mix of freshers and experienced candidates. Eg: - Fresher/ Entry (0-2 years) / Mid-Level (5- 10 years) / Young Banking Professionals (2- 5 years)

They are looking to fill the openings across India. Eg: - Delhi/ Chandigarh/Bathinda/Jaipur/Guwahati/Muzaffarpur

They are looking for experience in Collections. Eg: - Candidate should have experience in SARFAESI / Track & control the delinquency of the area, Bucket-wise & DPD wise and focus on non-starters / Tracing out absconded default customers and initiate the recovery process

The Collections can be of Assets in a specific geographical area. Eg: - / Responsible for managing and undertaking collections process for debts that have been assigned / Regularly track the portfolio for specific buckets for the assigned area

The collections can be of Assets of a specific pool. Eg: - Consumer Durable / Used Cars / Suvidha LAP / Payout Team / 2 Wheeler Loan / Business Loan / Micro Finance / XSELL 

One and Only Objective of this Blog Series: To increase the prospective applicant’s pool by 4X.

Let the prospective employer and prospective employee interact with each other to arrive at an optimum solution.

Nothing is perfect.

In case you come across any fraudulent correspondence related to job openings or offers at IDFC FIRST Bank, please email them immediately at: hiring.vigilance@idfcfirsbank.com

 

·       Disclaimer: These are my personal views only. I am solely responsible, for errors, if any.

·       I am in no way associated with the above prospective employer

·       Readers are requested to always refer to the prospective employer’s official website for the latest updates.

·       Do not depend on 3rd party websites, including mine!!

·       The images are used for representational purposes.

·       Copyrights rest with original copyright holders.

·       The bottom line is Safe ePayments. Nothing More-Nothing Less.

·       My world revolves around Safe ePayments.