Cash Management Services 2.0

Virtual Account is a pass through account linked to a real bank account. A Virtual account is used to improve inward payments reconciliations. When a business receives payments from multiple sources and over a period of time, it gets difficult to track-who paid and which reason. This is usually reconciled manually by matching reference numbers in the bank statements with screenshots provided by a payer. By creating multiple virtual accounts mapped to the same account, it becomes possible to reconcile different incoming transactions into a bank account.
With Cashfree autocollect- cash management services, you can generate any number of virtual accounts or UPI IDs for each payer or invoice and share a/c details while receiving payments. For repeated customers you can use a dedicated virtual account or UPI ID.

No, it is not possible to hold money in a virtual account. The payment so received eventually passes to the linked real bank account. The virtual account here is used only for payments reconciliation.

For most banks, Virtual account payments can be received only using NEFT or RTGS; IMPS payments fail. The payments are not instant and restricted by banking hours. Using Cashfree cash management services solution, funds can be remitted to the virtual account through all bank transfer modes including UPI, IMPS, NEFT, RTGS and even Cheques. Cashfree also helps you create Virtual UPI IDs to accept payments through any UPI app such as WhatsApp or Google Pay. Moreover, for banks, reconciliation of payments happens through files sent over email, which is a once a day reconciliation process. For Cashfree, payment confirmation can be received through an API which is a real-time system update for receipt of funds. Cashfree also supports fully numeric virtual accounts unlike many banks which work on all bank interfaces -- alpha-numeric bank accounts provided by banks do not work on many of the older bank interfaces, especially on mobile.

No, however for automating outward payments you can use Cashfree Payouts. It is bulk disbursal solution that helps you send money to any UPI-BHIM ID, Paytm wallet, debit card or bank account. With inbuilt bank account verification feature, you can verify the bank account details and ensure that payments hit the right account. Checkout Payouts here.

No there is no KYC required for creating a virtual account. You can create any number of virtual accounts and virtual UPI IDs using cashfree cash management services.