The Razorpay Test mode is a replica of Razorpay in a sandbox environment. This allows you to test all aspects of your integration before you go live.
After thoroughly testing your integration, you can switch to the Live mode and start accepting payments from customers.
The Test mode is available to you as soon as you complete the sign-up process. You can use Test mode as long as you want.
The Live mode is available after you activate your account from the Razorpay Dashboard.
Generate API keys in Test mode to use the API keys in Test mode.
Generate API keys in Live mode to use the API keys in Live mode.
Actions taken in the test mode have no consequences in your live environment. Transactions and entities created in the test mode do not appear in the live mode. No real money is used in the test mode.
Payments made by your customers are settled to your account according to your settlement cycle.
Separate Set of API Keys in Test and Live Mode
You have to generate a separate set of API keys for Live and Test modes. Know more about API Keys.