Revenue leakage is the unnoticed or unintended loss of revenue from your company.

While leaks can come from both the revenue and the expenditure side, most commonly,
revenue leakage refers simply to not billing (or under-billing) your customer for
products and services provided. How big a problem is it? Statistics surrounding
revenue leakage vary, but estimates indicate that most companies stand to lose
between 1 and 5 percent of their earnings before they can be realized. For
enterprise companies, this type of loss can add up to a significant impact to the
bottom line.

Revenue leakage happens when banks deviate from normal methods such as:

1.The bank grants interest waiver to some parties

2.Deducting less interest than agreed interest

3.Waiver of appraisal charges or processing charges.

4.Free inspection of unit.

5.Funding of interest.

6.Free documentation

7.Bearing full stamp duty by bank instead of 50�50

8.Issueing free drafts to certain parties

9.Allowing free remittance facility.

10.Accomodating checks when there is no fund.

11.Applying simple interest where interest has to be compounded.

12.Keeping clearing bills long pending

13.Crediting before clearing

14.Returned checks keeping pending.