How collections platforms are being re-architected to move away from hardcoded regulatory logic
By Prasad Patil, CTO & Chief – Business Operations, Mobicule Technologies
For most of the last decade, collections technology in India’s BFSI sector has been built around a fairly simple assumption: that the rules governing how a bank, an NBFC or an HFC can pursue a defaulting borrower are stable enough to be written directly into the platform’s code. Interest computation methods, penal charge structures, communication windows, escalation timelines and recovery workflows were designed for the specific lender category the institution belonged to and then embedded deep within the application logic. It worked, largely because regulatory change in this space was infrequent and incremental.
That assumption is now being tested. The Reserve Bank of India’s draft circular from August 12, 2026 which proposes to harmonise interest rate frameworks across banks, NBFCs and HFCs ahead of an April 2027 effective date, is the latest in a string of regulatory moves that...
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