Payment and Settlement in India

Payment and Settlement

The financial transaction is a part of our day to day life. India’s growing economy has witnessed a continuous increase in the financial transaction. For transaction includes two important entities i.e. Payment and Settlement. We are going to discuss how payments and settlements are done through different channels.

All the payment and settlements in India comes under PAYMENT AND SETTLEMENT ACT OF 2007 and regulated by the Reserve Bank of India and the Board for Regulation and Supervision of Payment and Settlement Systems. Let’s discuss the popular payment and settle method in India.


  • National Electronic Fund Transfer
  • No minimum and maximum limit
  • Fund transfer is done in batches of half an hour from 8 AM to 7 PM
  • 23 batches per day
  • Monday to Saturday(Except 2nd and 4th Saturday)
  • Beneficiary Registration is required
  • Account number and IFS code is required for a transaction
  • Not more than 25 ₹ charge


  • Real-Time Gross Settlement
  • The minimum limit is 2 lakh and NO maximum limit
  • Fund Transfer is in Real-time
  • Beneficiary Registration is required
  • Account number and IFS code is required
  • Charges up to ₹ 30 for 2-5 lakh up to ₹ 55 for more than 5


  • Immediate Payment Service
  • The limit is 2 lakh per day
  • Transfer is immediate
  • 24 * 7 Service
  • Instant payment
  • Charges – 5 ₹ up to 1 lakh
    15 ₹ 1- 2 lakh
  • Requires – ACC. The number and IFS Code
    MMID and Mobile number
    * MMID- Mobile money Identification Number
  • Product of NPCI ( National Payment Corporation of India )


  • Unified Payment Interface
  • The limit is ₹ 1 lakh/day
  • Instant Process
  • Free of charge
  • Requires Smartphone with working Internet
  • Requires VPA(Virtual Payment Address) and M-pin
  • Not require IFS code and Account number
  • Product of NPCI
  • E.g. – BHIM app, Phonepee

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