J January 17
Kotak Mahindra Bank Ltd (KMBL) has introduced Same Day Settlement (SDS) functionality for merchants for payments received at their Point of Sale (PoS) terminals.
At a time when digital payments are proliferating, the SDS feature is particularly useful for businesses with immediate cash flow needs, those with high inventory turnover and the need to replenish inventory frequently, and businesses that make the most of the services of day laborers take payroll, the private bank said in a statement.
Available in two cycles with cut-off times of 2pm and 5pm respectively, traders can opt into either or both cycles and receive their funds in just a few hours on the same day. It added.
Thakur Bhaskar, Senior Executive Vice President & Head – Liability Products and Merchant Acquiring, Kotak Mahindra Bank, noted that shortening the settlement cycle with SDS is of tremendous value for both small and large merchants, particularly certain categories of merchants, as they give them certainty of inflows, which helps them plan their cash flows and manage working capital needs more efficiently.
“Our traders now have the ability to receive same-day settlements, just hours after the transaction is completed, giving them quick access to their funds.
“The same-day settlement feature will also encourage more merchants to accept digital payments and give a big boost to the Digital India initiative,” said Thakur.
January 17, 2022