FAQs for Instant UPI

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 facility?

Only merchants who hold a Kotak Current Account are eligible for this service. It applies to all UPI transactions done on POS terminals, Bharat QR, and UPI QR stickers. Currently, this service is available for new Kotak merchants only.

Also, this service is enabled 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 access their funds within seconds.

Merchants can enjoy increased cash flows, manage low working capital, pay bills at any time without delays, repay any due loans, along with managing their stocks.

What is the difference between Instant UPI Settlement and Same Day Settlement?

Kotak Bank offers merchants the 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 happen 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, the Instant UPI Settlement service is available 24x7 on all days,

including Sundays and public holidays.

Are there any charges?

This service is entirely free of cost with no set-up or maintenance fees.

Currently, there is Zero MDR on UPI transactions.

How can a merchant opt for Instant UPI Settlement?

Currently, the Instant UPI Settlement service is available for new Kotak merchants only. Merchants can initiate a request at the time of applying for a new POS machine or QR sticker by reaching out to their Relationship Manager,

visiting the nearest branch, or simply requesting the sales executive to activate the service.

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 the existing merchants holding a Kotak POS, the service is currently not available.

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 entirely 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 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).

Is it applicable to large merchants?

Yes, it applies to large merchants as well. For each credit, the Merchant will receive an intimation of the funds credited to his account.

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 for UPI and RuPay debit card transactions settled with the Same Day Settlement feature.

Frequently Asked Questions