18.6 Daily batch — order of operations

The daily batch is the LMS’s heartbeat. Mis-ordered or missed batch operations cause material accounting / compliance problems. This page sets the standard order.

Overall daily cycle

00:00  Day rolls over
        │
        ▼
01:00  Tier-1 batch jobs start
        │
        ├── Daily interest accrual         (target: complete by 02:00)
        ├── Daily classification           (target: complete by 02:30)
        ├── Daily provisioning             (target: complete by 03:00)
        │
        ▼
03:00  Reconciliation prep
        ├── Reconciliation with prior-day sponsor-bank statement (target: 04:00)
        │
        ▼
06:00  Business-day ops batch starts
        ├── Co-lending settlement (per period; daily / weekly)
        ├── Borrower statement generation (on schedule)
        ├── Bureau monthly submission file (on monthly schedule)
        │
        ▼
Throughout day: real-time ops continue
        ├── Repayment receipts processed (real-time)
        ├── Charges applied (real-time)
        ├── Drawdowns processed (real-time)
        ├── Webhook handlers active (NACH ack incoming)
        │
        ▼
15:00 – 17:00  NACH file generation cut-off
        ├── Generate next-day's NACH presentation file
        ├── Submit to sponsor bank by 18:00 cut-off
        │
        ▼
18:00 – 19:00  End-of-business-day administrative batches
        ├── Daily MIS to partner lenders
        ├── EWS engine refresh
        │
        ▼
22:00 – 23:00  Pre-rollover housekeeping
        ├── Audit log integrity verification
        ├── Backup verification
        │
        ▼
23:30  Pre-rollover snapshot for next day

Tier-1 jobs (financial-critical)

Job 1: Daily interest accrual

Inputs: All loans in ACTIVE or any SMA state (not NPA, not closed).

Operation:

for each loan:
    if loan.classification in {NPA_SUBSTANDARD, NPA_DOUBTFUL_*, NPA_LOSS}:
        continue  # accrual frozen

    outstanding = loan.current_outstanding (after all yesterday's events)
    daily_interest = outstanding × loan.rate / 365

    emit event: accrual(loan_id, date=yesterday, amount=daily_interest)

    loan.accrued_interest += daily_interest (projection update)

    post GL: Dr Accrued Interest Receivable, Cr Interest Income

Idempotency: Each accrual event has key accrual:{loan_id}:{date}. Re-running the job doesn’t double-post.

Performance: For ~10,000 active loans, completes in < 5 minutes with parallel batch.

Audit: Per-loan accrual event in audit chain.

Job 2: Daily classification

Operation:

for each loan in {ACTIVE, SMA_*, NPA_*}:
    days_overdue = compute_DPD(loan)
    new_class = classify(days_overdue, current_class, time_in_NPA)

    if new_class != loan.current_classification:
        emit event: classification_change(loan_id, old_class, new_class)
        loan.current_classification = new_class (projection)
        post classification_snapshot(loan_id, date=yesterday, class=new_class, dpd=days_overdue)

DPD computation:

For each schedule_line in loan.schedule:
    if schedule_line.total_due > schedule_line.total_paid:
        overdue_amount += (schedule_line.total_due - schedule_line.total_paid)
        days_overdue = max(days_overdue, days_from(schedule_line.due_date, today))

Classification logic:

if days_overdue == 0:
    return STANDARD
elif days_overdue <= 30:
    return SMA_0
elif days_overdue <= 60:
    return SMA_1
elif days_overdue <= 90:
    return SMA_2
elif days_overdue > 90:
    if time_since_NPA <= 12 months:
        return NPA_SUBSTANDARD
    elif time_since_NPA <= 24 months:
        return NPA_DOUBTFUL_D1
    elif time_since_NPA <= 48 months:
        return NPA_DOUBTFUL_D2
    else:
        return NPA_DOUBTFUL_D3
# Loss assignment per separate workflow

Upgrade gate (per Nov 2021 IRACP):

if loan.current_classification in NPA states:
    if days_overdue == 0 AND total_arrears_cleared == True:
        emit upgrade event (requires manual approval per board policy)
        new_class = STANDARD

Upgrade is not automatic on DPD = 0 from partial payment; requires explicit clearance of all arrears.

Idempotency: snapshot per (loan_id, date) is unique; re-run is no-op.

Performance: ~20 minutes for ~10,000 loans with parallel batch.

Job 3: Daily provisioning

Operation:

for each loan:
    class = loan.current_classification
    outstanding = loan.current_outstanding

    provision_amount = compute_provision(class, outstanding, secured)

    emit event: provision(loan_id, date=yesterday, class, amount=provision_amount)

    post GL: Dr Provision Expense, Cr Provision for NPA (Liability)

Provisioning rates (illustrative; verify per SBR-MD):

Class	Provisioning
Standard	`0.25 – 0.40%`
SMA-0/1/2	Standard-level (no separate prov)
Sub-standard	`10%` of outstanding
Doubtful D1	`100%` of unsecured + `20%` of secured
Doubtful D2	`100%` of unsecured + `30%` of secured
Doubtful D3	`100%` of unsecured + `50%` of secured
Loss	`100%`

Daily snapshot: per (loan_id, date).

Tier-2 jobs (recurring administrative)

Operation:

Pull yesterday’s sponsor-bank statement (SFTP / API).
For each statement entry:
- Match against expected LMS entries (disbursements, NACH credits, payouts).
- On match: confirm.
- On mismatch: route to exception queue.

Output: reconciled entries + exception list.

Job 5: NACH presentation file generation

Operation:

Identify dues for tomorrow.
Generate NACH file per format (5.14).
Submit to sponsor bank by cut-off.

Order matters: must run after morning ops have processed any pre-day repayments that change tomorrow’s dues.

Job 6: Co-lending settlement (daily / per period)

Operation:

Sum yesterday’s repayments by partner.
Compute partner share.
Generate settlement instruction.
Submit to sponsor bank for settlement.

Job 7: EWS engine refresh

Operation:

For each active borrower, refresh EWS signals (drawing on latest data).
Raise alerts on threshold breaches.
Route to risk-team queue.

Job 8: Borrower statement generation (scheduled)

Generate monthly statements for borrowers per cycle.
Email / WhatsApp / borrower-portal access.

Job 9: Bureau submission (monthly, on schedule)

On the 15th of each month (or per policy), generate file for all 4 CICs.
Submit; track acks.

Job 10: Audit log integrity check

Recompute hash chain.
Alert on any mismatch.
Run at low-volume time (e.g., 22:00).

Ordering rationale

Tier-1 jobs run before any other writes for the day to ensure:

Accrual is based on settled outstanding (no mid-day repayments confuse).
Classification reflects yesterday’s full picture.
Provisioning is based on yesterday’s classification.

NACH file generation must run late enough to include any same-day repayments that change tomorrow’s dues, but early enough to meet sponsor-bank cut-off.

Failure handling

Tier-1 failure

If accrual / classification / provisioning fails for some loans:

Don’t proceed to dependent jobs without re-run.
Alert immediately.
Manual investigation; fix; re-run.

Tier-2 failure

If NACH file generation fails:

Bypass for that day → borrowers’ dues continue but presentation delayed by a day.
Notify ops.
Fix and submit next day.

If reconciliation fails:

Continue with exception queue.
Don’t block other operations.

Performance

For 100,000 active loans:

Daily accrual: < 30 minutes with parallel batch.
Daily classification: < 45 minutes.
Daily provisioning: < 30 minutes.
NACH file generation: < 15 minutes for ~5,000 daily debits.

Beyond 1 million loans, batch jobs are partitioned by loan_id range and parallelised across workers.

Day-N+1 reporting after batch

By 06:00 of the next day, the platform’s dashboards show:

Yesterday’s classification distribution.
Yesterday’s roll-rate.
Yesterday’s NPA additions.
Yesterday’s repayments.
Yesterday’s reconciliation exceptions.

Ops, risk, finance all consume this in the morning.

What the platform must enforce

All Tier-1 jobs must complete daily — no skip.
Idempotency so re-runs are safe.
Audit trail for each batch run (start time, end time, records processed, exceptions).
Monitoring of batch SLAs.
Alerting on failures.
Documented runbooks for batch failure scenarios.

18.4 Interest conventions.
2.10 Asset classification.
5.4 Events and async — event sourcing context.
5.14 NACH file format.
18.11 Reconciliation algorithm.

18.6 Daily batch — order of operations

Overall daily cycle

Tier-1 jobs (financial-critical)

Job 1: Daily interest accrual

Job 2: Daily classification

Job 3: Daily provisioning

Tier-2 jobs (recurring administrative)

Job 4: Reconciliation with sponsor bank

Job 5: NACH presentation file generation

Job 6: Co-lending settlement (daily / per period)

Job 7: EWS engine refresh

Job 8: Borrower statement generation (scheduled)

Job 9: Bureau submission (monthly, on schedule)

Job 10: Audit log integrity check

Ordering rationale

Failure handling

Tier-1 failure

Tier-2 failure

Performance

Day-N+1 reporting after batch

What the platform must enforce

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