What is instant UPI settlement or real-time settlement for UPI transactions?
For any customer payments done on POS machines or QR stickers, the settlement to the merchants usually happens on T+1 day (i.e. the next day after the transaction is done) in their registered Current account.
However, with Kotak Bank’s Instant UPI Settlement service, merchants can receive funds instantly in their Kotak Current Accounts for all successful UPI transactions done by their customers on Kotak POS machines or QRs
Can anyone avail Instant UPI settlement?
Only merchants who hold a Kotak Current Account are eligible for this service. It is applicable for all UPI transactions done on POS terminals, Bharat QR and UPI QR stickers.
Also, this service is enabled
[LD(BK1] at the MID level, so all TIDs linked to that particular MID will be activated with the service.
How can Instant UPI Settlement help merchant’s business?
With Instant UPI Settlement, merchants can get instant access to their funds, within seconds.
Merchants can enjoy increased cash flows, manage low working capital, pay bills at any time without delays or repay any due loans along with managing their stocks.
What is the difference between Instant UPI Settlement and Same Day Settlement?
Kotak Bank offers the merchants with flexibility to choose how they prefer the settlements for their business.
With Same Day Settlement, all transactions (Cards & UPI) get settled the same day within a few hours basis the cycle opted by the merchant (cycle 1 & cycle 2)
With Instant UPI Settlement, settlements for all their UPI transactions happens instantly. For Card transactions, Instant Settlement facility is not available. Card transactions will get settled as per the defined settlement cycles.
Does UPI Instant Settlement service have any restrictions on the transaction amount?
Merchants will be able to settle all UPI transactions instantly without any limitations on the amount.
For Instant UPI Settlement, will a merchant get the settlement on all days, including public holidays?
Yes, Instant UPI Settlement service is available 24x7 on all days,
including Sundays and public holidays.
Are there any charges?
This service is completely free of cost with no set-up or maintenance fees.
Currently, there is Zero MDR on UPI transactions.
How can a merchant apply for Instant UPI Settlement?
Merchants can apply for Instant UPI Settlement by reaching out to their Relationship Manager or
visiting the nearest branch or simply requesting the sales executive while taking a new POS machine or QR sticker.
How long does it take to activate the service?
For a merchant who has a Kotak Current account and has taken a new POS terminal,
the service will come into effect as soon as the on-boarding is completed successfully & the machine is ready to use.
For an existing Kotak Bank POS or QR holder with Kotak Current Account, it will be activated within 10 working days after the request is raised with the respective team.
Can a merchant switch back to standard T+1 settlements?
In case the merchant doesn’t want to settle payments instantly for UPI transactions
and wants to disable the service completely and switch back to standard T+1 settlement, then the merchant must reach out to their Relationship Manager or visit the nearest Bank branch requesting for the same.
Will the settlements happen automatically for this service?
Yes, UPI transactions get automatically settled on any terminal type: Kotak POS machine or QR stickers, with no action required from the Merchant’s end.
Can merchants get a report for all the payments received through Instant UPI Settlements?
Merchants can find all the payment details in the settlement report (MPR).
In case a merchant has Kotak POS terminal, can he still avail this service? How will he get settlement credit instantly for UPI transactions?
Yes, merchants with Kotak POS terminal can enjoy Instant UPI settlement service.
Any UPI payment that is done by the customers by scanning the Dynamic QR on the merchant's POS machine will get instantly credited in his Kotak Current Account. Moreover, the merchant doesn’t have to manually close the batch for settlement in this case.
Is it applicable for large merchants?
Yes, it is applicable for large merchants as well. For each credit, the merchant will receive an intimation of the funds credited in his account.
Is it applicable for merchants on-boarded on kotak.biz?
Yes, the same is applicable for the kotak.biz app merchants as well.
If Instant UPI Settlement service is activated, then the funds for successful UPI transactions will be credited instantly in the registered Kotak Current Account of the merchant.
Can a merchant enjoy both, Same Day Settlement as well as Instant UPI settlements?
Yes! With instant UPI settlements, there is no need for manual batch closure & hence all UPI transactions will get instantly settled.
If a merchant also has availed Same Day Settlement service, based on the cycle & depending on timely batch closure by the merchant, his card payments will get settled at a fee of 0.20%. There is no fee charged for UPI and Rupay debit card transactions settled with the Same Day Settlement feature.