| 44 Annual Report | 2025-2026 our Business Correspondents (“BCs”), for which they receive a service fee. As BCs, they are responsible for sourcing new customers on our behalf in accordance with our approved KYC and credit policy/process guidelines, and within the framework of Reserve Bank of India (Non-Banking Financial Companies – Microfinance Institution) Directions, 2025, as amended. These sourcing and collection partners also support us in repayment monitoring and collection activities. Amounts collected from borrowers are subsequently deposited into our designated bank accounts, in line with the operational protocols and controls established under the partnership. 3) Direct Assignment Direct Assignment (DA) transactions enable microfinance lenders to enhance liquidity by transferring eligible loan pools to other regulated financial institutions. In such transactions, the partner NBFCs acts as the originator and assignor of the underlying loan receivables to our Company, which acts as the assignee. Under a DA arrangement, a qualifying pool of assets is identified following comprehensive due diligence and scrutiny in accordance with the RBI’s guidelines on DA. The transaction is executed through a formal assignment agreement and a servicing arrangement, typically facilitated by a trustee structure, under which the originating NBFCs (the assignor) continues to act as the servicer. As servicer, the assignor remains responsible for collection activities and subsequently remits collected amounts to us through the appointed trustee, adhering to the agreed pay-in and pay-out timelines. We ensure full compliance with all applicable RBI regulations governing direct assignment structures, including eligibility criteria, minimum holding period (“MHP”), minimum retention requirement (“MRR”), and reporting obligations. In FY 2026 Arohan expanded this ecosystem by onboarding 19 new MFI partners, for term loans as well as improving liquidity for sellers through Direct Assignments and extending its footprint into new markets. This strategy reflects Arohan’s commitment to financial inclusion, operational innovation, and sustainable growth, positioning it as a leader in collaborative microfinance. CENTRAL OPERATIONS AND CUSTOMER INSIGHTS Our central operations team oversees a wide range of enterprise-level functions, including product management and diversification, process management, cashless collections, central processing operations, policy formulation, customer service, and customer experience management. Our product management team is responsible for designing, refining, and managing products in alignment with customer needs and market expectations. In addition, the central operations function leads the execution of various strategic initiatives aimed at enhancing operational efficiency, strengthening controls, and improving customer engagement. Key initiatives include: a) Cashless repayment project, to drive digital payment adoption and reduce cash-handling risks; b) End-to-end paperless disbursement process through e-sign, ensuring faster and more secure disbursal workflows; c) Customer on-boarding through e-KYC, which enhances compliance and mitigates fraud risks; d) Loan officer live tracking project, designed to improve field productivity and monitoring; e) Welcome calls through multilingual voice bot, enhancing early-stage customer engagement; f) Customer loyalty programmes, implemented to strengthen customer retention and improve center meeting attendance; and g) Process control which encompasses fraud, audit action closure, and branch cash management process. The department also undertakes the periodic review and refinement of field staff incentive frameworks and scorecards, ensuring alignment with business goals, regulatory expectations, and performance standards. Customer Engagement and Recovery Strategies The customer insights team also forms a part of the central operations department. The customer insights team is the custodian of customer grievance redressal mechanisms to ensure compliance with MFIN and RBI guidelines for the same. When a customer has a complaint or query, the same is addressed by the relevant customer service representative or the branch head. If the complaint cannot be resolved, the customer has the option of escalating the same by contacting our toll-free number, WhatsApp or E-mail to our customer care helpdesk. To avoid any language barrier issues, each customer’s call is redirected based on location. If the complaint remains unresolved, our customer may further escalate the matter to the grievance redressal officer. Workflow-based routing of cases has been integrated so that all customer queries and concerns are linked to an appropriate workflow, enabling prompt follow-up action. Management Discussion & Analysis
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