Balances

Know about the various balances available to you and how you can add funds and maintain them from the Dashboard.


There are two types of balances available on the Dashboard:

Balances Overview

After deduction of fees and tax, the payments received from your customers are added to your Merchant Balance or Current Balance. According to your settlement cycle, this accumulated amount is settled in your bank account.

  • The current balance is used to process refunds to your customer, settlements to your linked accounts and chargebacks.
  • It is important for you to maintain a sufficient current balance.
  • We do not charge any fee to process refunds. However, the fees and tax charged for processing the original transaction are not refunded to you when you process a customer refund. This amount is deducted from your current balance when you process your refund.

Watch Out!

If any chargeback is applicable for you and you do not have a sufficient balance in your current balance, the current balance will become negative.

Example 1

Current Balance
Opening balance₹0
Let us assume a chargeback of ₹500 is applicable for you.-₹500

(₹0 - ₹500)

Example 2

Let us say you have a current balance of ₹300.

Current Balance
Opening balance₹300
Let us assume a chargeback of ₹500 is applicable for you.-₹200

(₹300 - ₹500)

Reserve Balance allows you to process refunds or settlements to linked accounts even if you do not have a sufficient current balance. The amount you add as the reserve balance becomes the maximum negative limit for your account. Razorpay does not deduct funds from your reserve balance. It uses the reserve amount as a negative limit for your account balance.

Example 1

If you add ₹1000 to your reserve balance, the negative limit of your account balance is automatically set at -1000. If you do not have a sufficient current balance, Razorpay will not fail your transactions until this limit is breached.

  • To increase your negative balance limit, you can from the Dashboard. You will have to transfer funds to your reserve balance only once in most cases.
  • You can add funds to Reserve Balance using the Razorpay Dashboard through either or .

Watch Out!

You should add funds only through the settlement account registered with us.

Watch this video on how to add Funds to your Reserve Balance.

  1. Log in to the .
  2. Click Account & Settings in the left navigation.
  3. Click Balances under Payments and refunds section.
  4. Click Add Funds.
    Add Reserve balance
  5. Select UPI.
  6. Enter the description and amount to be added.
  7. Click Add Credits.
  8. Enter the email and contact number on the checkout pop-up page and click Proceed.
  9. Select UPI, enter UPI ID or scan the QR, click Pay Now and complete the payment.
    Enter UPI ID or Scan QR

Your Reserve Balance is updated.

Handy Tips

It may take 2-3 hours for the Reserve Balance to reflect in your Razorpay Account.

  1. Log in to the .
  2. Click Account & Settings in the left navigation.
  3. Click Balances under Payments and refunds section.
  4. Click Add Funds.
  5. Select Bank Transfer.
  6. Copy the account number and IFSC code.
    Copy IFSC and account number
  7. Open your netbanking portal, create a beneficiary with these details and transfer the amount.

Handy Tips

It may take 2-3 hours for the Reserve Balance to reflect in your Razorpay Account.

Let us say you have a current balance of ₹0 and a reserve balance of ₹1,000

Without Reserve BalanceWith Reserve Balance
Opening BalanceCurrent Balance → ₹0
Reserve Balance → ₹0
Current Balance → ₹0
Reserve Balance → ₹1,000
You receive and capture payment of ₹1000.

Let us say we charge a fee of ₹5 to process this transaction.
Current Balance → ₹995
Reserve Balance → ₹0
Current Balance → ₹995
Reserve Balance → ₹1,000
You process a full refund of ₹1000 for the above payment.The refund fails since you do not have a sufficient current balance.The refund is successfully processed.

Current Balance → negative ₹5
Reserve Balance → ₹1,000

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