Frequently Asked Questions (FAQs)

Find answers to frequently asked questions about Razorpay Payment Settlements.


1. What are settlements?

Settlement is the process in which the money received from your customers is settled to your bank account. Settlements for all payments will be done in INR (Indian Rupees), irrespective of the currency in which the payment was made by the customer. Settlement cycle is subject to bank approval and can vary based on your business vertical, risk factor, and so on. Each settlement generated has a unique settlement id attached to it along with the amount settled. Know more about

.

2. What is the settlement cycle you offer?

Our standard settlement cycle is T+2 working days, T being the date of transaction capture. This means that the captured payments are settled within 2 working days from the date of capture.

Handy Tips

Working days do not include second and fourth Saturdays, Sundays and bank holidays.

3. How do I check settlements in my bank account?

Each settlement has a Unique Transaction Reference (UTR) number, which is provided by our banking partners. You can see this number in the settlement section when you click on a particular settlement id. You can also download Settlement Reports from the Reports section to view UTR. This is a unique reference number available across banks, which can be used to track a specific settlement in your bank account.

UTR

4. The status of my settlement shows as failed on the Dashboard. What do I do?

Check if you have received a mail from our Support Team. Please revert to the mail with the necessary details. If you have not received any email from Razorpay, please contact our

for assistance.

5. How to reconcile settlements along with the transactions made?

You can

for the Settlement Reconciliation Report from the Reports section on the Razorpay Dashboard. The report contains transactions and the corresponding settlement ids.

1. What are Instant Settlements?

By default, the settlement cycle is T+2 days for domestic payment and T+7 days for international payments, where T is the date the payment was captured.
The Instant Settlement feature allows you to settle your current balance to your bank account instantly 24x7 for a small fee. You can either settle your current balance in full or choose to settle a portion of it as per your needs.

2. Are there any additional charges for Instant Settlements?

Yes. We charge a

to process Instant Settlements.

3. How is the fees and tax for an Instant Settlement deducted?

The fees and tax for an Instant Settlement is deducted from the request settlement amount. For example, you place a request for ₹2,000.00. Fees of ₹3.00 and tax of ₹1.00 is deducted from the requested amount and the remaining amount, ₹1,995.00 is settled to your bank account.

4. Why is there a limit on Instant Settlements?

We have introduced the limits on Instant Settlements to make the settlement process more predictable for your daily needs. With limits, you can:

  • Settle a definite amount from the assigned limit until the next working day.
  • Enjoy a quicker and higher success rate throughout the working day.

For any queries,

or your Relationship Manager.

5. Once enabled, do I need to make Instant Settlement request for all my settlements?

No. You can create an Instant Settlement request when you need the money. If you do not create an Instant Settlement, your current balance is settled to your bank account as per your settlement cycle.

6. What happens to my current balance if I do not make any Instant Settlement requests?

Your current balance is settled to your bank account as per your settlement cycle.

7. Once Instant Settlements are enabled, will I be charged for all my settlements?

No. You will only be charged for the Instant settlements you create. You will not be charged for settlements that happen according to your settlement cycle.

8. How do I enable instant settlements?

Instant settlements is an on-demand feature. You should

with our support team to get this feature activated on your Razorpay account. Know more about .

1. What are Smart Settlements?

is an extended form of that allows you to settle amounts above ₹ 5 L in one shot using the RTGS channel. A settlement done via Smart Settlements reflects as a single entry in your bank statement making reconciliation much easier.

2. What is the amount cap for Smart Settlements?

You can initiate a Smart Settlement if the amount is abover ₹ 5 L. The maximum ceiling is ₹ 50 Cr per settlement.

3. Is it mandatory to use Smart Settlements if the amount is > 5 L?

No, Smart Settlement is a recommended option for amounts > 5 L and < 5 Cr because it settles the amount as one credit in your bank statement. You can still use the Instant Settlement option for this range, but it will appear as multiple entries in your bank statement. However, amounts > 5 Cr are settled through Smart Settlements only. Instant Settlement option is automatically disabled for amounts > 5Cr.

Find out more about

4. Do I have to request for enabling Smart Settlements?

No, Smart Settlement feature is automatically enabled if the Instant Settlement feature is activated for your dashboard. However, Instant Settlement is an on-demand feature.

to get this feature enabled.

5. Is there a separate fee for Smart Settlements?

No, Smart Settlements follow the same fee structure as Instant Settlements. Click to know more about

6. How is the fees and tax for a Smart Settlement deducted?

The fees and taxes for Smart Settlements are deducted from the requested settlement amount. For example, you place a request for ₹2,000.00, fees of ₹3.00 and tax of ₹1.00 is deducted from the requested amount and the remaining amount, ₹1,995.00 is settled to your bank account.

7. What is the settlement cycle for Smart Settlements?

The settlement cycle is T+0 for Smart Settlements. Since Smart Settlements are routed through RTGS channel, the transaction usually happens real-time. However, depending on bank channel traffic, it may sometimes take up to 1 hour.


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