VERIFIED SOLUTION i

How to configure bounced emails in EngageOne Digital Delivery

If 'bounced@domain.com' is inbox where bounced messages are expected, than following configuration needs to be done in EngageOne Digital Delivery user interface:

1) In the outbound profile (which is being used to send the email) need to have this address (bounced@domain.com) in the "Return-path Address:" and "Errors-to Address:". This will ensure that on delivery failure notification is sent back to bounced@domain.com.
2) In an inbound profile, there will be a need of having 'bounced@domain.com' and its password in the "Email Account:" and "Password:" field so that EngageOne Digital
Delivery polls this directory to download any Inbound (including bounce) messages.

After making these changes restart the Application Server and send an email to any nonexistent email id using the outbound profile (in point #1), bounced will reported in the EngageOne Digital Delivery.
 
UPDATED:  November 17, 2017