Balancing the Risks and Profits of One Time Settlements

Systems for the management of non-performing assets help allocate time, efforts, and investments for better recoveries

The digital age has simplified getting a loan with online payouts and reliable loan management services. But, for lenders collections remain a challenge.


For unpaid loans termed as non-performing assets (NPAs), the Reserve Bank of India (RBI) has prescribed One-time Settlements (OTS) for relief to both borrowers and Banks.


In this day and age, timely repayments are key for banks to grow. For this, proactive efforts towards defaulters help in monitoring settlements for credit, liquidity, and operational risks. Here, Recovery and Collection software boosts the maximum value from settled payments by enabling faster collaboration and timely measures.


Banks that still use manual processes to settle payments are burdened by risks arising in data collection, transaction monitoring, and post-reconciliation adjustments. Moreover, one-time settlement solutions integrate with credit monitoring systems to optimize efficiency for repayments.


CRisMac OTS: One-time Settlements Synced with Credit Monitoring Solutions


Settlements are a time-consuming process as banks have to calculate the due amount based on the insights of a borrower, and schemes of RBI, and these have to be accurate. A comprehensive monitoring and repayment calculation solution is a catalyst in the process.


CRisMac OTS solution manages written-off debts (partial/full) on settlements of all claims (if any) or as an internal arrangement. It helps streamline recovery operational efforts that are a huge cost where the yield cannot be predicted.


In-built Recovery Analytics optimizes the costs of these recoveries by offering Statistics-based calculations using ML-powered solutions. On monitoring datasets of borrower behavior, the solution offers an overview of each portfolio and customer segment.


It eases the process of portfolio monitoring with automation for insights and in-depth analysis allowing relationship managers to act on time-sensitive developments. Moreover, transactions can be monitored easily with accuracy checks for data and content validity, interchanged qualifications, balancing errors, and rejected values.


How Do OTS Solutions Account for Risks and Increase Profits?


Banks have to process and settle payments from different partners depending on the loan or the payment chain. Generally, they end up with different formats of the same transaction records at the end of a settlement cycle.


CRisMac OTS helps avoid manual intervention done to match or reconcile the amounts across disparate sources. Our solution simplifies timely reconciliation, challenges in calculations for auditors, and reduces the high costs of running a back office.


Furthermore, Banks can drive business growth using settlement data in near real-time to deliver value-added services to borrowers. The profits are a result of a few factors

  • Efficiently account for liquidity in assets

  • Speedy and prompt recovery of loans and advances

  • Get ample time to identify unusual behavior and take preventive measures

Quickly Adopt an OTS Solution for any Core Banking or Digital Lending System


A new-age solution for settlements offers API-first, cloud-backed digital technology. Banks can upgrade existing systems with zero downtime. It enables accurate monitoring with seamless data delivery to responsible teams, along with multi-dimensional views and analysis of data.


CRisMac OTS integrates fully with legacy, on-premise, or cloud-based systems. Get in touch with D2K Banking Fintech Consultancy Experts for more information on roadmaps for deploying technologies for comprehensive data analytics.