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Settlements refer to the process of transferring funds to your (merchant) bank account after aggregating the transaction amount and deducting our applicable charges and adjustments (Refunds, Chargebacks, etc).Read more about this
The different types of settlements are as follows:
  1. Standard settlements (Default): Standard settlements are processed on a T+1 or T+2 basis, depending on your configured settlement cycle:
    • T+1: The amount is settled on the next business day after the transaction.
    • T+2: The amount is settled two business days after the transaction.
      Business days exclude weekends and bank holidays. If the scheduled settlement day falls on a non-working day, the settlement will occur on the next working day.
For example:
  • If a transaction occurs on Friday, June 3:
    • For T+1 settlement, funds will be settled on Monday, June 6, as Saturday and Sunday are non-working days.
    • For T+2 settlement, funds will be settled on Tuesday, June 7.
  1. Instant settlements: Instant Settlements enable you to access your funds within 15 minutes, significantly faster than the standard T+2 settlement cycle.
  2. On-demand settlements: On-demand settlements allow instant fund transfers to your bank 24x7, including holidays, for a small fee. Activation is required, as the default cycle is T+2 days.
Each settlement includes a Unique Transaction Reference (UTR) provided by our banking partners. You can view this number in the settlement section by clicking on a specific settlement ID. Additionally, Settlement Reports can be downloaded from the Reports section to access the UTR, which serves as a unique reference across banks for tracking specific settlements in your bank account.
Settlements are credited to the bank account you add when you set up your merchant account. Settlements include the total transaction value minus any applicable charges and adjustments.To view or manage your settlement bank account, go to Payment Gateway Dashboard > Settings > Bank Accounts in your .
If your settlement is scheduled for today, please wait until the end of the day (EOD). In the rare case of a delay from the bank’s side (such as due to network issues or public holidays), we’ll keep you informed and share updates as soon as possible.
If your settlement fails, it will automatically be reattempted during your next settlement cycle. The settlement will reinitiate only if you are an active transacting merchant, which means you must have at least one successful transaction during that cycle.
Based on the settlement’s failure reason, take the corrective actions and this will get settled in the next settlement cycle.
With on-demand settlements, you can request settlements to your bank account on any day and at any time 24x7, including holidays.You can specify the amount you want to withdraw as per your requirement. A small fee is applicable to process these settlements. On-demand settlements enable you to receive the unsettled amount to your bank account instantly 24x7 including holidays.By default, the settlement cycle is t+2* days, where ‘t’ is the day of the transaction. To use on-demand settlements, the feature must be enabled.1200On-Demand Settlement Flow

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Activate on-demand settlements

To enable instant settlement from the Cashfree Payments dashboard:
  1. Go to the Payment Gateway Dashboard.
  2. Navigate to the Settlements section. 3.Look for the On-Demand Settlements option. If you’re eligible, you’ll see options to configure On-Demand settlements.
After activation, you can request settlements instantly 24x7 including holidays.
  1. Go to Payment Gateway Dashboard > Settlements > On-Demand.
  2. In the On-Demand settlement screen, click Request Activation. The feature activation request will be sent to your Cashfree Payments account manager, and they will enable it for you. You will receive an email after the feature has been activated.
After activation, you can request settlements instantly 24x7 including holidays.

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Initiate on-demand settlement

To initiate an on-demand settlement, you must first get the feature activated. After activation, you can request settlements instantly 24x7 including holidays.To initiate on-demand settlement,
  1. Go to Payment Gateway Dashboard > Settlements > On-Demand > click Settle Now.
  2. In the On-Demand Settlement screen, specify the amount you want to withdraw and click Confirm. You will see the amount you are allowed to withdraw and the additional charges applicable is also shown. 3584
Settlement Amount You will see a success screen as shown below:3584Settlement SuccessYou will see all the settlements received in the Settlements > On-Demand screen. You can click the individual settlements to know more details.
Settlement cycle is subject to bank approval and can vary based on transaction type, business category/model, risk parameters and other factors.
At Cashfree, we follow the RBI’s bank holiday list for Mumbai. You can refer to the list here. There can be other holidays that banks may observe which may vary bank to bank and state to state. We send regular updates related to settlements, to receive the emails, you can get your email ID for settlement notifications using your Cashfree Dashboard.
Cashfree offers you the fastest settlement cycle. By default the settlement cycle will be T+2* days, which means a payment captured on Monday, will be credited to your account on Wednesday i.e three working days.
The settlements aren’t processed on banking holidays. You can refer to the RBI’s bank holiday list here.
Cashfree’s instant settlements enable businesses to receive funds almost instantly, with cycles starting from 15 minutes, reducing the standard T+1 or T+2 settlement periods. Eligibility requires meeting specific criteria. For more information, fill out the Support Form.Instant settlement is an advanced payment gateway feature offered by Cashfree that lets you access your funds within 15 minutes of payment capture from the customer. This will help you to respond faster to new business opportunities, and get complete control over your working capital.
  • Manage your working capital better: With instant access to your funds, you can plan your business expenditure better and drive your business towards growth. This can also help avoid the dependency on costly short-term loans to meet business needs.
  • Make fool-proof projections: You can now plan your short-term business goals better without the need to assume the revenue you are yet to receive. You can take calculated risks based on your liquidity and not shoot in the dark.
  • Handle refunds and chargebacks better: The uncertainty around the usual settlement cycles often affect transactions where the customer has requested for a refund or a chargeback immediately. With instant settlements, you get instant access to those funds and in case of refunds or chargebacks, you can happily reverse the payments instantly, without the need to incur any loss for those transactions.
Yes, a nominal fee is applied for processing instant settlements.
Yes, we’ve introduced limits on instant settlements to streamline the settlement process and meet your daily needs. With limits, you can:
  • Settle a specified amount up to the assigned limit until the next working day.
  • Benefit from faster and higher success rates throughout the working day.
For any queries, fill out the Support Form
To activate instant settlements (IS) for your account, please follow the steps below:
  • Your account already comes with a ₹50,000/- settlement limit auto-activated for instant settlements.
  • If you want to increase this limit, you can request it by clicking here. This will take you to the Merchant Dashboard, where you can request activation of instant settlements for your account.
  • Once the request is submitted, your account will be reviewed and, if eligible, instant settlements will be enabled for you.
If you have any further queries, please reach out to us through the 24/7 Chatbot on the Merchant Dashboard.
To be eligible for instant settlements, the following conditions must be met:
  • Your merchant account must be fully onboarded and KYC-verified (business details, bank account, etc).
  • Your transaction history, business category, risk profile and bank approval must satisfy the criteria for instant settlements.
  • The feature is subject to the account being configured and the merchant being deemed eligible; once your request is submitted, it will be reviewed and enabled where applicable.
Once enabled, you’ll see the instant settlement limits and usage in Merchant Dashboard → Payment Gateway → Settlements → Online.After activation or limit-increase, you will be able to use instant settlements (funds credited within ~15 minutes) instead of the standard T+1/T+2 settlement cycle.
You can check the unsettled amount from the Summary and Settlement sections of the Merchant Dashboard.
  1. Log in to your account on the Merchant Dashboard.
  2. Navigate to the Summary section on the Payment Gateway module. This section displays:
    • The total transaction amount for the day.
    • The amount to be settled (unsettled amount).
  3. For a detailed view:
    1. Navigate to the Settlement section.
    2. Select the Standard option.
    The unsettled amount will be displayed on the screen.