Instant Settlements

About Instant Settlements

You can use the Instant Settlement feature in Razorpay to settle your available balance to your bank account instantly, 24x7, for a small fee.

• You can either settle your available balance to your bank account in full or choose to settle a portion of it, unless you reach the maximum daily withdrawable limit.
• The maximum daily withdrawable limit is a limit set for each Razorpay merchant for instant settlements which resets automatically at the start of each working day.
• By default, the settlement cycle is T+2 days for domestic payments and T+7 days for international payments, where T is the date the payment was captured. With Instant Settlements, you receive funds on a T+0 basis.
• You can use

  Instant Settlements

  to settle amounts < 5 Cr and

  Smart Settlements

  to settle amounts > 5 Cr and < 50 Cr.

How it Works

1. Amounts < 5L are settled instantly through Instant Settlements. Instant Settlements are routed through the IMPS channel.
2. Smart Settlement option also is enabled when the entered amount is > 5L and < 5 Cr. You can choose between Instant or Smart Settlement here.
   1. If you choose Smart Settlement, the amount will reflect as a single credit in your bank statement since it uses the RTGS channel.
   2. If you choose Instant Settlement, the settlement will show as multiple credits in your bank statement as IMPS channel has a cap of 5 L per transaction.
3. Amounts > 5 Cr and < 50 Cr are settled only through Smart Settlements.

Instant Vs Smart Settlements

Initiate Instant Settlements

Settle amounts < 5 Cr through Instant Settlement feature via Dashboard and API:

Initiate Smart Settlements

Use the Smart Settlement feature to settle amounts > 5 L and < 50 Cr in a single shot within a time span of 1 hour.

1. Log in to the Dashboard.

2. Navigate to Settlements.

3. Click Settle Now to go to the Instant Settlements window.

4. Your current balance, maximum daily withdrawal limit and the current withdrawable amount are displayed. Enter the amount you want to settle to your bank account.

5. Click Next. A pop-up showing Instant Settlement and Smart Settlement opens. The fees + tax for the settlement and the net amount that will be credited to your account will be displayed in the pop up.

6. For amounts > 5 L, the recommended option is Smart Settlement.

   

7. Click Settle Now after selecting Smart Settlement.

The Smart Settlement request is created. The requested amount will be settled to your bank account within 1 hour.

You can check the Dashboard for latest updates on the limits and availability of instant settlements.