Kotak Mahindra Bank Ltd (KMBL) has introduced the Same Day Settlement (SDS) feature for merchants for payments received on its Point of Sale (PoS) terminals.
At a time when digital payments are soaring, the SDS facility is especially useful for businesses with immediate cash flow requirements, those with high inventory turnover and the need to replenish stocks frequently as well as for businesses that employ the services of daily wage earners for optimal payroll management, the private sector bank said in a statement.
Available in two cycles with a cut-off time of 2 PM and 5 PM, respectively, merchants can opt for either or both the cycles and receive their funds in just a few hours on the same day. It added.
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Thakur Bhaskar, Senior Executive Vice President & Head - Liability Products and Merchant Acquiring, Kotak Mahindra Bank, observed that shortening the settlement cycle with SDS is of tremendous value to both small and large merchants, especially for certain categories of merchants, giving them surety of inflows, helping them plan their cash flows and manage working capital requirements more efficiently.
“Our merchants will now have the option to receive settlements on the same day, in just a few hours after the transaction is completed, giving them quick access to their funds.
“The Same Day Settlement facility will also spur more merchants to accept digital modes of payment, giving a big fillip to the Digital India initiative,” Thakur said.