Arohan Annual Report FY 20-21

PROCESS FRAMEWORK Operational Architecture Arohan’s entire organic operation is categorised under six Zones where Zone I refers to West Bengal, Zone II refers to Bihar and Jharkhand, Zone III refers to the North-Eastern states of Assam, Tripura, Meghalaya and Manipur, Zone IV is Odisha, Zone V is Uttar Pradesh and Zone VI refers to Madhya Pradesh and Chhattisgarh. Each Zone has three to five Regional Offices (RO) with a total of 26 Regional Offices overall and each RO has four to seven Areas mapped to it. Under each Area there are four to six Branches. Cashless Focus Reaching a completely cashless back-end is one of the key focus areas of Arohan. This is in tune with the one of the key national agendas of a cashless economy. Arohan has steadily transformed its disbursement and collection processes to maintain consistent levels of customer service while enhancing operational efficiencies and scale. addition to other product interventions while also reducing the value at risk by restating stressed loans without increasing overall exposure to any customers. (1) Collection efficiency represents total business collections (excluding MSME lending portfolio and inorganic portfolio) during the month by total demand for themonth. Collections include the collection against the month’s demand, outstanding demand, advance, and against pre-closure. Cashless Disbursement: Arohan had a 100% cashless disbursement system as of March 31, 2020 and continued to maintain the same during FY2020-21. This process is enabled through the centralised Loan Management System, Profile by FIS, which facilitates initiation of NEFT transactions directly to customers’ accounts. Arohan also partnered with a leading Payments Bank to seamlessly open instant bank accounts with Insta-debit cards for customers allowing them to withdraw cash at nearby ATMs or nearby banking merchant points. Cashless Collection: In FY 2020-21, Arohan achieved significant progress in its drive for cashless collections. Having partnered with a leading Payments Bank, Arohan has introduced cash-drop facility for its customers at the Banking Outlet points which are easily accessible across geographies. Additionally, the organisation introduced customer-initiated and Arohan-assisted cashless payment solution models such as Bharat Bill Pay System (BBPS), Aadhaar Enabled Payment System(AEPS) and Point-of-Sale (POS) machines for debit card payments. CUSTOMER INSIGHTS & GRIEVANCE REDRESSAL In line with one of the key pillars of Arohan’s Core Values of Customer Centricity, the Company has a dedicated Customer Insights function that acts as a one-stop point for the resolution all customer queries and concerns. The Customer Insights team is the custodian of Customer Grievance Redressal mechanisms to ensure compliance with MFIN and RBI guidelines for the same. When a customer has a complaint or query, the same is addressed by the relevant Customer Service Representative or the Branch Head. If the complaint cannot be resolved, the customer has Management Discussion & Analysis 45