What Is a Settlement Period?

The settlement period starts when the customer pays and ends when the money lands in your account. In between, the payment may be authorised, captured, converted and sent through banks. Each step can add time, and weekends, bank holidays and checks can add more. RBI does not set one number of days for aggregator settlements. It expects the agreement between the aggregator and the merchant to state the timeline clearly. For an exporter, the settlement period also feeds into the realisation clock, because the export invoice is only realised once the money is received.

For example, a Chennai consultant invoices a client in Singapore for USD 2,000 on a card payment link. The client pays on a Friday. The agreement says funds are settled after processing and conversion, so the credit appears the following week. The consultant records the invoice date, payment date and credit date separately.

• Bank compliance: Export money must be realised within the period in Regulation 5 of the 2026 export regulations, and the AD bank may extend it. Slow settlement is rarely a problem for the limit alone, but track dates for each invoice.
• Cash flow: A slower settlement period delays when you can pay suppliers or taxes. Ask providers for the timeline in writing before you quote payment terms.
• Income tax: Advance tax and books follow the date money is received or the invoice is recognised under your accounting method. Ask a chartered accountant which date applies to you.
• GST: A delayed credit does not change the invoice date used for GST. For export refunds, see GST refund for export of services.

Settlement moves a payment through several stages, and the total time is the sum of them. Providers and banks publish or state these stages in their agreements.

1. The customer pays, and the payment is authorised.
2. The provider captures the payment and may hold it during checks or a dispute window.
3. If the currency differs, it is converted at the rate in the agreement.
4. The funds are paid out to the merchant's bank account.
5. The bank credits the account and reports the receipt, which you match with the invoice.

Read the merchant agreement for the stated timeline, then compare it with the actual dates on your credits. Use the worked example below, which uses hypothetical dates.

1. Find the settlement clause in the agreement and note the stated timeline.
2. Record the date the customer paid, for example 3 March.
3. Record the date your bank credited the account, for example 8 March.
4. Count the days between them, which gives 5 days in this example.
5. Compare with the agreed timeline, and raise a written query with the provider if the gap is longer.
6. See PA-CB settlement timeline for how RBI treats aggregator settlements.

A settlement period is a span of time, while a value date is the specific date from which a bank counts a credit or debit as effective. A single payment has both. Read the value date guide for the bank side.

• Fixed by RBI: RBI's Master Direction leaves the timeline to the agreement but requires that it be stated transparently. See PA-CB settlement timeline.
• Same as realisation: The settlement period is a payment processing time. The realisation period is the legal limit within which export money must be received.
• Same for all routes: Bank transfers, card payments and aggregator payouts follow different schedules.
• Same as value date: They are different concepts. See what is value date.
• Always the same length: Holidays, checks and disputes can lengthen a payout. Read the agreement for the circumstances.

• Payment gateway: Technology that routes payment data between the customer, merchant and banks.
• Value date: The date a bank treats a credit or debit as effective.
• Inward remittance: Foreign currency money received into India.
• Chargeback: A reversal of a card payment after a customer dispute.
• PA-CB: A payment aggregator authorised for cross-border collection.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. RBI Master Direction on Regulation of Payment Aggregators (PA), Paragraph 16(a), Table 1 note on settlement timelines (checked 9 Oct 2026)
2. Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Regulation 5 (checked 9 Oct 2026)