Match NACH Batches, Co-Lending Settlements, and Collections to Every Loan Account Automatically
Reconciling collections for an NBFC means tracing a bank-level credit all the way down to a single loan account and instalment, across every channel it could have arrived through.
A batch-level credit can't tell you which mandates were honoured. The return file can.
Applying a flat 80:20 split to a collection that includes penal interest and bounce charges produces the wrong sweep.
A collection can arrive through NACH, UPI, RTGS, cash, or cheque, and each needs to land on the correct instalment.
A missed partial collection or a double-counted reversal distorts the DPD bucket, and everything downstream follows it.
A servicing fee invoice touches three separate counterparty records before it's actually reconciled.
Four steps that take a day's collections from raw bank files to a loan-level reconciled position.
What a reconciliation process needs to catch changes with how an NBFC lends and collects.
Matching NACH and multi-channel collections straight to the loan account without a partner bank in the loop.
Splitting and reconciling collections against a partner bank's master agreement and settlement file.
Reconciling collections and part-payments against collateral-linked loan terms.
Tracing a bank-level credit down to the exact loan and instalment it belongs to.
Keeping DPD and NPA classification accurate for RBI reporting and audits.
Reconciling servicing fees, GST, and TDS across co-lending partners every cycle.
NBFCs with one co-lending relationship, still needing accurate split and settlement tracking.
NBFCs juggling several banks, each with its own cut-off, split, and file format.
NBFCs where manual batch-level reconciliation stopped keeping pace with disbursement volume.
Every collection is traced to the exact loan account and instalment it belongs to, not just a batch total.
DPD is posted from the original due date, so provisioning and NPA classification stay reliable.
Co-lending breaks are aged and flagged well within the master agreement's cut-off window.
Servicing fees, GST, and TDS are matched across counterparties without a manual cross-check.
The variance log, DPD register, and NPA register are maintained continuously, not assembled at quarter end.
Collections across every channel land on the right loan automatically, freeing operations teams for exceptions.
Kosh AI connects directly with all major banks and ERPs, enabling real-time data sync for faster, more accurate reconciliations—no manual uploads, no delays.
A reconciliation automation tool for NBFCs matches every collection, whether it arrives through NACH, UPI, RTGS, cash, or cheque, against the right loan account and instalment, then keeps DPD and NPA classification accurate as those collections post. In a co-lending arrangement, it also splits each collection into principal, interest, penal interest, and bounce charges before calculating the bank's and NBFC's share.
Done manually, this means an operations team working from a bank statement that shows a batch-level credit instead of individual mandate outcomes, then trying to work backward to figure out which loans were actually paid. A missed partial collection or a double-counted reversal doesn't just create a reconciliation gap, it distorts the DPD bucket, which can misclassify an account's asset category and skew provisioning.
Kosh AI's reconciliation automation tool parses NACH return files by UMRN, splits co-lending collections against the master agreement, and keeps a loan-level DPD and NPA register accurate without a manual aggregation step at quarter end.
Matching collections to loan accounts by hand can work at low volume. See what changes as the loan book grows.
| Feature | Automated NBFC Reconciliation | Manual NBFC Reconciliation |
|---|---|---|
| NACH Return Handling | Classified by UMRN and reason code automatically. | Worked out from a batch-level bank credit. |
| Co-Lending Splits | Calculated per component, matched to the master agreement. | Often applied as a flat split regardless of composition. |
| DPD Posting | Posted from the original due date, every time. | Can understate DPD when returns post late. |
| Settlement Breaks | Aged and flagged within the cut-off window. | Found during a periodic manual review. |
| Servicing Fee Reconciliation | Matched against GST and TDS records directly. | Cross-checked by hand across multiple registers. |
| Audit Readiness | Variance log and registers built continuously. | Assembled manually before each quarter-end review. |
A bank credit that references a batch ID rather than individual mandates can't tell an operations team which loans were actually paid that day. Working that out by hand means cross-referencing the batch file, the return file, and the loan management system line by line, and even then, a partial collection or a late-posting return is easy to apply to the wrong instalment.
The real cost shows up downstream. A missed partial collection or a double-counted reversal distorts the DPD bucket, and an account can end up misclassified for provisioning before anyone notices the root cause. In a co-lending arrangement, the stakes are higher still: a flat split applied to a collection that actually includes penal interest or a bounce charge produces a sweep that doesn't match what the master agreement says either party is owed.
Kosh AI reconciles collections down to the loan account automatically, splits co-lending settlements by component, and keeps DPD tied to the original due date, so the numbers feeding provisioning and regulatory reporting are the actual numbers, not an approximation.
Reconciliation gets harder for an NBFC in a few predictable situations.
Past a certain volume, tracing every NACH return and bank credit back to a loan account by hand stops being realistic.
Each partner bank brings its own split rules, cut-offs, and file formats to reconcile against.
Collections arriving through NACH, UPI, RTGS, cash, and cheque all need to land on the right instalment.
DPD and NPA figures feeding regulatory returns need to be accurate without a manual reconciliation sweep.
Spotting a real settlement break takes more than matching totals. Kosh AI understands which variances are routine and which ones need escalation.
Learns which NPCI return codes are retriable and routes each one to the right next step automatically.
Separates principal, interest, penal interest, and bounce charges before any co-lending sweep is calculated.
Flags a break before it ages into a reportable variance under the master agreement.
Keeps DPD tied to the original due date, even when a return or partial collection posts late.
Bring a recent NACH return file or co-lending settlement to the call. We'll show you how Kosh AI would have reconciled it down to the loan account.
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