Why is instant settlement not enabled by default ? What is the cost difference between T+2 and instant settlement?

Why is instant settlement not enabled by default ? What is the cost difference between T+2 and instant settlement?

As per standard industry practice, the settlement SLA is T+2 working days, where T refers to the transaction success date plus two working days.

Instant settlement is typically not enabled by default, as it involves higher transaction fees and additional compliance requirements from payment gateways.

We're currently using standard (T+2) settlement to maintain a balance between cost efficiency and reliability.

​

If you're considering instant settlement, here's a quick comparison to help you to decide:

  • Instant Settlement Cost: 0.3 % + GST of Total settlement amount

  • FD (Fixed Deposit) Cost: 0.019 %

  • T+2 Settlement Cost: ₹ 0

​

So essentially:

  • If you're opting for instant settlement, you're paying 0.3 % + GST for early access to your funds.

  • If you are keeping the fund in your account or making FD’s then you may earn  0.019%, but instant settlement costs 0.3% + GST — that’s 5x more just to get funds early.

  • T+2 settlement is free or cheaper, just requires patience.

​

Conclusion:

✅ T+2 settlement is more cost-effective if you can wait for the funds.
❌ Instant or FD options make sense only if you urgently need the money.


    • Related Articles

    • How can an admin approve zero-cost facility bookings made by users?

      ADDA allows admins to manually approve zero-cost facility bookings by enabling a specific setting. This is useful when facilities are offered for free but still require admin control over bookings. To enable this functionality, you must first set up ...

    • How can the resident change their default unit?

      In a community, if a resident is a part of multiple units, they can set one unit as default. Whenever they open their ADDA for that respective community, the app will show the data of their default unit. Please follow the below steps to change your ...

    • Why can’t residents add their helpers to ADDA by themselves?

      In ADDA, residents cannot directly add domestic helpers to their units through the app. Instead, they can only search and assign existing helpers to their units. Adding new helpers must be done exclusively by the admin, as multiple checks are ...

    • What is the difference between Member and Non Member Income?

      Member Income: This refers to revenue generated from the members of the apartment community or residential association. Members are typically the residents or homeowners who are part of the community. Member income sources may include monthly ...

    • What is the difference between Income Tracker and Utility Tracker?

      Income Tracker is a module in ADDA designed specifically for managing square feet or fixed-rate billing models for charges such as maintenance fees, sinking funds, and other predetermined contributions from community members. Utility Tracker is ...