How to Build an RCS + SMS Fallback Collection Workflow for Indian NBFCs

Why Most NBFC Collection Messaging Is Ineffective

The typical NBFC collection messaging setup looks like this: a bulk SMS is sent 2 days before EMI due date, and another SMS is sent on the day of default. Both are unbranded, both go to all borrowers in a DPD bucket at once, and both have no mechanism to capture borrower response other than "they paid or they didn't."

This is reactive. It treats collection messaging as a notification system rather than a two-way engagement that can resolve issues before they become NPAs.

An RCS + SMS fallback workflow changes this at three levels:

• Personalization: Each message includes the borrower's specific account details, not a generic reminder
• Interactivity: Borrowers can tap "I already paid," "Request callback," or "Dispute amount" — responses that trigger automatic system actions
• Channel optimization: Borrowers on RCS-capable devices receive rich, verified messages; others receive SMS fallback — no manual segmentation required

The Technical Architecture

An RCS collection workflow has four technical components:

1. Loan Management System (LMS) — trigger source Your LMS generates payment events: upcoming due dates, missed payments, payment received. These events are the triggers for collection messages. 2. RCS aggregator API — delivery layer Scalify Labs provides a REST API that accepts message send requests with recipient number, message template, and variable content (account number, amount, due date). The API handles RCS delivery, automatic SMS fallback, and returns delivery receipts and read receipts. 3. Response handler — webhook When borrowers tap action buttons ("I paid," "Request callback," "Pay Now"), the RCS platform sends a webhook to your configured endpoint. Your system processes these responses and updates account status accordingly. 4. Reporting dashboard — analytics Real-time view of message delivery, read rates, button engagement, and payment conversion by DPD bucket and message type.

DPD Bucket — Message Mapping

Pre-Due (D-7, D-3, D-1)

Trigger: Scheduled date-based event from LMS Channel: RCS primary, SMS fallback Template type: Informational reminder with payment button

D-7 Message (Rich Card):

Hi [Name], your EMI of ₹[Amount] for loan [Masked Account] is due on [Date]. Tap below to pay early and avoid late fees.

Buttons: [Pay Now] [View Account] [I have a query]

D-3 and D-1 messages repeat with increasing urgency in the copy but maintain the same structure. Do not change the buttons — consistent UI reduces friction.

Expected outcome: 15–20% of borrowers pay within 24 hours of D-7 message. Payment rate increases on D-3 and D-1 messages.

Day of Default (D+0)

Trigger: EMI not received by end-of-day cutoff in LMS Channel: RCS primary, SMS fallback Template type: Overdue notice with payment and dispute options

[BankName]: Your EMI of ₹[Amount] for [Masked Account] was due today and has not been received. To avoid late charges, please pay by 11:59 PM. If you have already paid, tap below.

Buttons: [Pay Now] [I already paid] [Request Extension]

The "I already paid" button is both a convenience for borrowers and a compliance mechanism — it creates a self-reported payment record. Your system should queue these accounts for payment verification rather than triggering further collection messaging immediately.

Early Delinquency (D+1 to D+30, Bucket 0)

Trigger: Event-based from LMS (daily check of unpaid D+0 accounts) Channel: RCS primary, SMS fallback Frequency: Every 3–5 days (do not over-message; it increases opt-outs) Template type: Resolution-oriented communication

[BankName]: Your loan account [Masked] is now [X] days overdue with an outstanding of ₹[Amount]. We want to help you resolve this. Select an option below.

Buttons: [Pay Now] [Request Payment Plan] [Speak to Agent] [Dispute Amount]

Each button response triggers a specific workflow:

• "Pay Now" → opens payment gateway


• "Request Payment Plan" → creates a case in your collections CRM, auto-assigns to agent


• "Speak to Agent" → queues callback request with customer details pre-populated


• "Dispute Amount" → creates a dispute record, auto-sends acknowledgement, pauses collection messages pending resolution

Moderate Delinquency (D+31 to D+90, Bucket 1–3)

At this stage, RCS messaging shifts from reminder to resolution — payment settlement offers, restructuring information, and clear contact information for field teams.

Frequency: Once weekly Content: Outstanding amount, days overdue, settlement options if applicable Button: [Pay Now] [Call Us] [Settlement Options]

Do not include threats or legally non-compliant language at any stage. RBI Fair Practices Code applies regardless of channel.

Opt-Out Handling: The Critical Compliance Component

Every RCS collection message must include an opt-out mechanism. In practice, this is typically a "Stop messages" quick reply that borrowers can tap to opt out of further RCS messaging.

Your system must:

• Record the opt-out with timestamp and account reference


• Immediately suppress the account from future RCS collection sends


• Fall back to phone calls only for that account

Note: Opt-out from RCS messages does not constitute opt-out from all communication. Legal notices, field visits, and phone calls are separate from digital messaging opt-outs and governed by your loan agreement and RBI guidelines.

Integration Timeline and Costs

Phase	Timeline	Description
RCS brand verification	5–7 working days	Google verifies NBFC identity and creates sender profile
Template creation and approval	2–3 days	Create and get approval for 6–8 collection templates
API integration	3–5 days	Engineering team connects LMS to RCS API and webhook handler
UAT and testing	2–3 days	End-to-end testing with test accounts in each DPD bucket
Go-live	Day 15–18	Full workflow live with monitoring dashboard

Total integration timeline: approximately 3 weeks from contract signing to first production message.

Setup cost: No setup fee at Scalify Labs. RCS brand verification costs are covered. Per-message cost: ₹0.18 for RCS delivery, standard SMS rate for fallback.