Arohan Financial Services Limited | Annual Report 2022-23

interfaces • Customer can apply from the comfort of her / his home • No group formation and no center meetings • No loss of daily wages for coming to the branch office or center • Flexibility to choose suitable loan amount and tenure • Flexibility to choose a suitable repayment schedule The ticket size of ArohanPrivilege loans ranges from INR 5,000 to INR 75,000. The facility is currently available for Privilege customers in the states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh, andWest Bengal. Cashless Back-End Arohan has successfully established a completely cashless back-end in tune with the national agenda of a cashless economy, helping the Company turn around its services to its customers in a faster, more secure environment. Over the years, Arohan has steadily transformed its disbursement and collection processes to better its customer service and experience and has a consistent appetite to better its best. Arohan continues with a 100% cashless disbursement system as of March 31, 2023. This process is enabled through the centralised Loan Management System, Profile by FIS, which facilitates the initiation of NEFT transactions directly to customers’ accounts. For Cashless Collections, Arohan introduced a cash-drop facility for its customers at the Banking Outlet points during the pandemic, which is easily accessible across geographies. The Company is live on most of the 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. Additionally, the Company has introduced UPI AutoPay (2nd in the Microfinance industry), WhatsApp payment services, and Payment through the “Apna Arohan” Customer app. Debt Receivable Department In order to ensure optimization of productivity, leaving ample bandwidth to achieve the Vision Statement, Arohan firmed up a Debt Receivable Department to take ameasured approach to curing overdue accounts. Back in FY 2022, Arohan strengthened its recovery efforts and established a dedicated frontline cadre of Recovery-CSRs (RCSR) monitored centrally for the management of NPA customers. September 2022 onwards, these RCSRs were re-christened to Receivable Executives (RE), their role and responsibilities including follow-ups, activations, and recoveries from PAR60 customers, along with the NPA pool. With a supervisory structure formed at Cluster, leading up to Divisional levels, to drive on-field teams, along with a Central Strategy Team together manage over 900 REs ensure efficient and effective management of NPA accounts. In FY 2023, Arohan successfully recovered a total of INR 112 Cr from such microfinance customers (including 100 Cr+ from NPA customers). Q1 14.86 19.36 35.65 42.93 Recovery (in INR Cr)_FY 2023 112.79 Q2 Q3 Q4 YTD To achieve such numbers, Arohan put into practice the following broad strategies and initiatives to connect with customers and ensure recoveries: Field Strategy • Customer Household Visit and Promise to Pay (PTP): Arohan’s cadre of Receivable Executives is focused on establishing connect with the identified pool of customers, educating them on the importance of good credit discipline and collecting repayment, or ensuring payment commitments through Promise to Pay (PTP) dates. Consistent customer calls and visits are prioritized with the aid of customer-level Recovery Scorecards which have been developed on the basis of collection trails, payment history, delinquency, and the on-us & off-us performances of our customers. • Legal Strategy - Soft Reminder Letter and Legal Notices: Soft Reminder Letters are also handed over to certain customers as a soft warning to them to repay to avoid any legal action in the future. In case of no response from the customers, Legal Notices through Advocates are also sent. Lok Adalat is another dispute redressal mechanism, Arohan is using to ensure recoveries through settlements from Local and National Lok Adalat Management Discussion & Analysis Annual Report 2022-23 | 40