Automated debit transaction failure rate stays high in June
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Synopsis
The high failure rates in debit payments in June have surprised analysts who had expected it to come down as restrictions in economic activity had started to ease with the fall in infections. Bounce rates have increased above 30% in May and June after falling to 27.48% in April 2021 which was much lower than the 36.65% reported in April 2020.
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Suresh Ganapathy, research analyst at Macquarie Capital Securities said the high failure rates in debit transactions could be an early indicator of stress in NBFCs.
Failure rates in automated debit transactions have remained stubbornly high in June indicating that financial stress due to localized lockdowns to curb the spread of the Covid 19 pandemic has still not subsided.