The standard basis for prioritizing collections accounts: the number of days an account has been overdue, the standard basis for collections prioritization and RBI provisioning norms.
DPD (Days Past Due) means the number of days a borrower’s scheduled payment has remained unpaid after its due date.
For example:
- EMI due on August 1
- Borrower hasn't paid by August 2 → 1 DPD
- Still unpaid on August 15 → 14 DPD
- Still unpaid on August 31 → 30 DPD
Why DPD matters in collections
The standard basis for prioritizing collections accounts: the number of days an account has been overdue, the standard basis for collections prioritization and RBI provisioning norms.
DPD is one of the key metrics used by banks and NBFCs to segment and prioritize overdue accounts. Generally, the higher the DPD, the more attention the account may require.
| DPD | Typical collections focus |
|---|---|
| 0 DPD | Payment is on time |
| 1–30 DPD | Early reminder / soft collection |
| 31–60 DPD | Increased follow-ups |
| 61–90 DPD | More intensive collection |
| 90+ DPD | Serious delinquency; regulatory classification may become relevant |
Important: DPD itself is a measure of overdue days; it is not the same thing as an NPA classification. Under RBI norms, the 90+ day threshold is particularly important for loan accounts, subject to the applicable regulatory framework.
For a collections/AI voicebot context, you could simplify the concept to:
DPD = How many days a borrower’s payment is overdue. It helps collections teams identify which accounts need attention first and determine the appropriate follow-up strategy.