Glossary

The following tables list all the commonly used terms and their definitions used in RazorpayX:

Banking

Terms | Description

Bank Downtime | Bank downtime refers to a period when a particular bank’s systems are idle, unresponsive, unavailable or underperforming.

Beneficiary Account | Beneficiary Account is the account to which money is credited in a payout/payment.

Beneficial Owner | A Beneficial Owner is a person or legal entity with a stake of 25% or more in a legal entity. In a trust, a beneficial owner is a trustee who has control over the assets and decisions of the trust. There can be more than one beneficial owners in an entity.

Beneficiary Bank | A Beneficiary Bank is the bank which holds the receiver’s account. It is the destination bank where the payment gets credited after a successful transaction

Changelog | Changelog is a chronological log of notable changes or feature updates made to a software or a system.

CIF | Customer Information Form or CIF is a form used to collect the personal details of a customer before onboarding.

Compliance | Compliance is a set of rules and regulations prescribed by the governing body, to be followed with respect to security, processes, operations, marketing and finance.

.csv file | CSV refers to Comma-Separated Values. CSV file format is a plain text format in which values are separated by commas and saved with extension .csv. It can be opened in a text editor like Notepad or MS Excel. A .csv file consumes less memory than Excel but does not contain formatting, formulae, macros, etc.

Current Account | A Current Account is a non-interest-bearing bank account, mainly used to service the needs of businesses. A RazorpayX powered Current account is opened in partnership with RBL/Yes Bank/ICICI bank and offers all standard banking features like cheque book, debit card and account statement. Know about Current Account.

Dashboard | A dashboard is a way of displaying various types of related information for a user in one place in the system.

Disclaimer | A disclaimer is a statement that seeks to limit the liability of a person or entity making the statement. A disclaimer relieves a person or an entity from all responsibilities, accountabilities and legal liabilities in case something goes wrong.

Escrow Account | Escrow Account is an account where a third party temporarily holds money on behalf of two other parties involved in a transaction. This process ensures that both parties fulfill their obligations before the transfer of funds or assets.

Franking | Franking is the process of stamping documents by authorized franking agencies, after the transaction, to confirm that stamp duty has been paid.

Fund Account | Fund Account is the account to which you need to send a payment. It is the beneficiary account for payouts.

Idempotency | An application call or operation is said to be idempotent if it has the same result, no matter how many times it is applied. This ensures consistency and predictability in scenarios like network issues, request retries, or duplicated requests and protects against accidental duplicate occurances.

IE Code | IEC or IE Code is a key business identification number issued by the Directorate General of Foreign Trade (DGFT), a part of the Ministry of Commerce and Industry, which is mandatory for export or import in India.

IFSC | Indian Financial System Code or IFSC is a unique eleven digit alpha-numeric code issued by the The Reserve Bank of India (RBI) to bank branches. It is used for electronic money transfers between banks and is unique to each branch of the financial institution.

IMPS | Immediate Payment Service or IMPS is an instant and 24x7 available money transfer service that is routed through NPCI (National Payments Corporation of India) from the source bank to the beneficiary bank. The maximum amount cap per transaction is ₹2,00,000/-.

Integration | Software integration is the process of combining or connecting one software application with another so that they can function together as a single system.

ISA | Investment Services Account or ISA is an account offered by banks and financial institutions to clients to enable a seamless platform for investments in various mutual funds and other financial instruments.

KYC | Know Your Customer or KYC is a set of processes that financial institutions use to verify the identity, profile and activity of the customers, and also to ensure legal compliance.

NBFC | Non-Banking Financial Company or NBFC is a financial institution that offer various limited banking services like lending, but does not have a banking license. A NBFC is not subject to the banking regulations.

NEFT | National Electronic Funds Transfer or NEFT is a form of money transfer routed via RBI by the banks. Transfers from the source bank are sent in batches once in every 30 minutes to the RBI which is then forwarded to the beneficiary bank.

Notarised | Notarisation is a legal process in India in which a public notary (a person who is authorized by the central or state government to attest documents) verifies the authenticity of documents and signatures.

NPCI | The National Payments Corporation of India or NPCI is an umbrella organization set up with the guidance and support of RBI and Indian Banks Association that manages India’s retail payments and settlement systems. The NPCI acts as an intermediary between banks and financial institutions to facilitate the settlement of interbank transactions.

NPO | An NPO is Non-profit Organisation that operates for charitable purposes often including entities like trusts, societies, and Non-profit Companies. An NPO Declaration for a Section 8 Company (under Companies Act, 2013; formerly Section 25 Company under Companies Act, 1956) in India is a formal set of declarations made during the registration and operation of the NPO. It is a key part of the incorporation and compliance process for these entities.

NPO | An NPO is Non-profit Organisation that operates for charitable purposes often including entities like trusts, societies, and Non-profit Companies. An NPO Declaration for a Section 8 Company (under Companies Act, 2013; formerly Section 25 Company under Companies Act, 1956) in India is a formal set of declarations made during the registration and operation of the NPO. It is a key part of the incorporation and compliance process for these entities.

NRI | Non-resident Indian or NRI is an Indian Citizen who resides outside India for more than 182 days in a financial year.

OCR | Optical Character Recognition or OCR is a technology that converts text from images into a machine-readable format. It is used to convert a scanned receipt or document into a text document that you can edit and search.

Partner Bank | Partner banks enable fintech companies to offer financial services to their customers by providing the necessary financial infrastructure. Fintech companies combine their cutting edge technology with the financial expertise of partner banks to offer quick and seamless financial management solutions like payment links, bulk payouts, payment modes and many more to their customers.

Payment Gateway | A Payment Gateway is a service which facilitates a payment between any two transacting parties by transferring information between them.

POC | Point of Contact is the professional or department that can provide information or assist on the particular subject whenever required by the customer.

P2P | P2P transaction is one where individuals directly transact business or cooperate in production with each other with little to no intermediation by third parties.

RazorpayX Account | RazorpayX Account is a Current Account used for business transactions. Currently, there are two types of accounts: • RazorpayX Lite • Current Account Know more about RazorpayX Accounts.

RazorpayX Lite | RazorpayX Lite is a digital account created in RazorpayX for businesses to start accepting payments or make payouts within a short span of time. Know more about RazorpayX Lite.

RTGS | Real Time Gross Settlement or RTGS is also a form of money transfer routed via RBI by the banks. Unlike NEFT, transactions made using this method are settled instantly. It can be used only when the minimum amount to be transferred is ₹2,00,000/- or more.

SaaS | Software as a Service or SaaS is application software hosted on the cloud and made available to end users by way of subscription. The user does not have to purchase the software to use it.

Scheduled Commercial Bank | A Scheduled Commercial Bank (SCB) is a commercial bank in India that is listed in the Second Schedule of the Reserve Bank of India Act, 1934. Banks must meet certain prescribed criteria to be included in the list. SCBs have several advantages over non-scheduled banks like borrowing funds at low interest rates from The Reserve Bank of India

Scheduled Payout | Scheduled Payout is a payout which is set in the system to occur at a future time or date. Money is debited from the source account only at the time of the transaction.

Service Aggregator | A Service Aggregator aggregates or combines a number of services sourced from multiple suppliers to have single view across those services. A Service Aggregator ensures that the services and its components function in a cohesive and unified manner.

SLA | Service Level Agreement or SLA is a legally binding contract between a service provider and a customer that specifies the level of service to be delivered.

Source Account | Source Account is the account from which money is sent or debited for a payout/payment.

Stamping | Stamping is the process by which you pay stamp duty to the government, before or at the time of the transaction to legalise the necessary documents pertaining to it.

Transactions | A transaction in RazorpayX indicates transfer of money from source account to beneficiary account.

UPI | Unified Payments Interface or UPI is another instant and 24x7 available money transfer service that is routed through NPCI for amounts. The maximum amount cap per transaction is ₹1,00,000/-.

UTR | Unique Transaction Reference number or UTR number is a unique code that is attached to every financial transaction processed by banks in India. It is used to distinguish one bank transaction from another.

Validated Bank Account | A Validated Bank Account or VBA is an account which has been verified for correctness before an online transaction.

VPA | Virtual Payment Address or VPA is a unique virual financial address that lets you send and receive money without having to share bank details such as account numbers and IFSC codes.

Widget | A widget is an interactive element of a software designed to enhance user experience by providing quick access to commonly used features, real-time updates, or personalized content.

.xlsx or .xls file | A .xlsx or .xls file is a Microsoft Excel file which holds information about all the worksheets together in a workbook. It can store data and also do operations on the data using formatting, formulae, macros, etc. Excel files use more memory but can read large data. Files saved in Excel cannot be opened or edited by text editors.

Payouts

Terms | Description

Allowlist | Allowlist is a cybersecurity system that permits only an approved list of email addresses, IP addresses, domain names or applications, to access or communicate with the system or network.

API | Application Protocol Interface or API is a software intermediary that translates user input into data which helps the system send back the right response. It allows two applications to communicate with each other.

Contact | A Contact is an entity to whom payouts are made. Contacts have certain identification properties such as name, email id and phone number. To make a payout to a contact, you must add a fund account to the contact.

Fund Account | Fund Account is an entity to which payouts can be made. Currently, RazorpayX supports three types of fund accounts: • Bank Account: Make payouts to a Contact’s bank account via bank transfer using one of the available Payout Modes such as NEFT, UPI or IMPS. • Cards : Make payouts directly to a Contact’s card via a bank transfer using one of the available Payout Modes such as NEFT, UPI or IMPS. • VPA (Virtual Payment Address): Make payouts to a Contact’s VPA via a UPI transfer.

IP address| An Internet Protocol address or IP address is a numerical label that is assigned to a device connected to a computer network which uses the Internet Protocol for communication.

Payload | Payload is the data you send to the server when you make an API request. It is the body of your request and response message.

Payout Link | A Payout Link is a way to instantly send money to beneficiaries without having to reveal bank account details of both parties.

Tokenisation | Tokenisation is a data security process in which unique randomised data strings known as tokens are used in place of account or credit card numbers. Tokenisation ensures that only tokens are exposed or stored during a transaction, in place of the original data, which prevents merchants from storing card or account details of customers.

Vendor Payments

Terms | Description

Amount to Vendor | This is the amount paid to the vendor. That is, the payout amount. For example: Amount to Vendor = Total Amount - TDS Amount to Vendor = ₹5,410 - ₹375 Amount to Vendor = ₹5,035

Payment Terms | The number of days you have to pay the invoice once issued to you. This can vary from Immediate to x number of days. For example, you are issued an invoice on July 01 and the payment terms for this invoice is 15 days. • This means the invoice has to be paid by July 15. • If the invoice is not paid by July 15, it is marked as Overdue on the Dashboard.

Subtotal | The invoice amount without GST, Cess and any other taxes.

Template | A template is a pre-built spreadsheet or workbook that is already formatted, organised, and populated with formulae tailored for a specific purpose.

Total Amount | The invoice amount with GST, Cess and any other taxes. For example, if your subtotal is ₹5,000, SGST is ₹200, CGST is ₹200 and Cess is ₹10. Total Amount = Subtotal + SGST + CGST + Cess Total amount = ₹5,000 + ₹200 + ₹200 + ₹10 Total amount = ₹5,410

Tax Payments

Terms | Description

CGST & SGST | Central Goods and Services Tax or CGST is a tax levied on intrastate supplies of goods/services by the Central Government. State Goods and Services Tax or SGST is a tax levied on intrastate supplies of goods/services by the particular State Government where the product sold is consumed. If a seller sells a product to a buyer within the same state then CGST and SGST will apply. Both the State and Central governments share the tax revenue upon a mutually agreed proportion.

ITC | Input Tax Credit or ITC refers to the tax paid on purchases for the business which can be claimed as deduction at the time of paying tax on output tax. When you buy goods/services from a GST registered seller/vendor, you pay tax on the purchase (Input Tax). On selling your goods/services, you collect tax from your buyer (Output Tax). Your tax liability is the difference between these two taxes.

GST | Goods and Services Tax or GST is an indirect tax to be paid to the Government by any person or company for goods sold or services rendered. Under the GST act, the Central Government will collect CGST, SGST or IGST depending upon whether the transaction is intrastate or interstate.

GSTIN | All businesses that register under GST are allotted a unique 15-digit identification number called the GSTIN.

GSTR 2A | GSTR-2A is an auto-generated statement that contains the Input Tax Credit (ITC) details of buyers/marchants. It is a dynamic statement and gets updated whenever a taxpayer’s sellers/vendors file their GST return of outward supplies. It is generated on a monthly basis.

GSTR-2B | GSTR-2B is an auto-generated statement that contains the Input Tax Credit (ITC) details of buyers/marchants. It is a static statement generated on a monthly basis, and does not change as and when the seller/vendor updates GST data.

IGST | Integrated Goods and Services Tax or IGST is a tax levied on all interstate supplies of goods/services, or across two or more States/Union Territories. IGST will be applicable on any supply of goods/services in both import and export in India. The tax will be shared between the Central and State governments.

RCM | Reverse Charge Mechanism or RCM in GST is a system where the recipient of goods or services is liable to pay the tax instead of the seller/vendor. Normally, the buyer pays for the value of goods/services received plus the GST to seller, who is registered under GST. The seller/vendor pays the GST to the government and files the information. In case of an unregistered seller/vendor, the responsibility of paying the GST lies with the buyer itself. The buyer can claim this as Input Tax Credit and deduct this amount while paying GST.

TDS | Tax Deducted at Source or TDS is an income tax component that you need to deduct while making specific payments (vendor payments, salaries, etc). TDS is calculated on the Invoice Subtotal. That is, the invoice amount without GST, Cess and other taxes. For example, TDS for a vendor is set to 7.5%. Subtotal (Amount without GST, Cess and other taxes.) = ₹5,000 TDS = ₹5,000 x 7.5% TDS = ₹375

Know more about tax payment here.

Accounting and RazorpayX Integrations

Terms | Description

Bookkeeping | Bookkeeping is an accurate day-to-day record of financial transactions.

ERP | Enterprise Resource Planning or ERP is a kind of business management software that helps organisations to manage their day-to-day activities in departments like finance, HR, operations and sales. It provides a centralised database that allows teams within the organisation to share information seamlessly.

Items | Items represent the goods a company has for sale or the raw materials needed to create those goods.

MIS | Management Information Systems or MIS is a department within an enterprise responsible for controlling the hardware and software systems that the enterprise uses to make business-critical decisions. It uses information technology to manage information within the organisation.

Reconciliation | Reconciliation is the process of comparing two sets of records to check that figures are correct and in agreement. It is used extensively in the field of accounting.

SKU | Stock Keeping Unit or SKU is a code assigned to items in inventory, used by retailers to keep track of stock levels, pricing, and other product details.

Tally | Tally is a popular accounting software used by organisations to track and maintain accounts.

Zoho Books | Zoho Books is a financial platform that enables you to create invoices, maintain and reconcile bank accounts, and make tax payments to ensure GST compliance.

Related Information

• About RazorpayX
• Test Mode
• Contacts and Fund Accounts