In the world of finance, the term “tally man” is often used to refer to individuals or agents who collect debts on behalf of a bank or financial institution. These individuals are tasked with the responsibility of ensuring that debtors make their payments on time and in full. One of the most prominent banks in India that uses tally men is Axis Bank, which has an extensive network of agents spread across the country. In this article, we will take a closer look at the role of tally men in Axis Bank’s debt recovery operations and explore their significance in the larger context of the Indian banking industry.
Tally Men in Axis Bank:
Axis Bank is one of the leading private sector banks in India, with a strong presence in both retail and corporate banking. The bank provides a wide range of financial products and services, including loans, credit cards, savings accounts, and investment options. As a bank, Axis Bank has a large customer base, and a significant portion of its revenue comes from interest on loans and credit facilities.
However, like all banks, Axis Bank also faces the challenge of non-performing assets (NPAs), which are loans that are not repaid by borrowers. To tackle this problem, Axis Bank employs a variety of debt recovery methods, one of which involves the use of tally men.
Tally men are essentially debt collectors who are employed by Axis Bank to collect payments from delinquent borrowers. These individuals are usually self-employed or work for a debt recovery agency and are paid a commission based on the amount of debt they recover. Tally men typically work on a commission basis and are highly motivated to recover as much debt as possible.
Tally men are an integral part of Axis Bank’s debt recovery operations, and they play a crucial role in ensuring that the bank’s NPAs remain under control. They are responsible for contacting borrowers who have defaulted on their payments and persuading them to pay back their outstanding dues. Tally men are also required to maintain detailed records of all their debt recovery activities and report back to the bank on a regular basis.
The Significance of Tally Men in the Indian Banking Industry:
The use of tally men is a common practice in the Indian banking industry, especially in the area of debt recovery. Banks in India face a significant challenge in managing their NPAs, which have been on the rise in recent years. According to data from the Reserve Bank of India, the gross NPA ratio for banks in India was 7.5% as of March 2020, up from 7.2% in September 2019.
Given the magnitude of the NPA problem in India, it is not surprising that banks like Axis Bank have invested heavily in debt recovery operations, including the use of tally men. Tally men are an important component of the debt recovery process, as they are often able to persuade borrowers to repay their outstanding dues through a combination of tact, persistence, and negotiation.
The use of tally men is also significant in the Indian context because it provides employment opportunities to a large number of individuals who may not have formal education or training in the financial sector. Tally men are typically self-employed or work for small debt recovery agencies, and they are able to earn a decent income by collecting debts on behalf of banks and financial institutions. In this way, the use of tally men supports financial inclusion and provides a means of livelihood to many people in India.
Tally men play an important role in Axis Bank’s debt recovery operations, and they are an integral part of the Indian banking industry. These individuals are highly motivated to recover as much debt as possible and are skilled at negotiating with delinquent borrowers. The use of tally men is significant in the Indian context because it provides employment opportunities to a large number of individuals and supports financial inclusion. As banks in India continue to grapple with the challenge of NPAs, it is likely that the use of tally men will remain an important part of their debt recovery strategies.
It is worth noting that the use of tally men has also been subject to criticism and controversy in the past. There have been reports of harassment and intimidation by some tally men, and concerns have been raised about their methods of debt collection. It is important for banks like Axis Bank to ensure that their tally men follow ethical and legal practices when collecting debts and that they are held accountable for any misconduct.
Overall, the role of tally men in Axis Bank’s debt recovery operations is a significant one, and it highlights the challenges and opportunities in the Indian banking industry. By employing a combination of traditional debt recovery methods and innovative strategies like the use of tally men, banks in India are working towards addressing the issue of NPAs and supporting financial inclusion in the country.