Initiate Payout

This page will give you an understanding of how to undertake payouts using Decentro's stack.

Overview

Initiate Payout API allows you to facilitate money transfers to/from your customers' linked consumers from within your application.

Decentro provides the below types of transfers.

  • Actual bank account through IMPS, NEFT, RGS
  • Virtual account to UPI handle (individual or business) using UPI
  • Virtual account to Virtual account within our outside Decentro's ecosystem

Decentro supports the below modes of transfers.

  • NEFT
  • RTGS
  • IMPS
  • UPI

Here are the limitations of each transfer type:

Transfer TypeTransaction Limits
UPIAmount <= 1L per transaction subject to consumer's bank policies and applicable across transactions coming from UPI apps, Bank apps, and through Virtual accounts. Processes 24/7
IMPSAmount <= INR 5L per transaction. This mode of transfer is immediate and is typically processed 24/7 and is settled to the beneficiary within 1 minute.
NEFTAmount <= INR 1Cr per transaction (Banking Hours). This mode of transfer is typically processed in batches and is settled within 2-3 working hours
RTGSAmount > INR 2L per transaction, Amount <= INR 5Cr (Banking Hours). This mode of transfer is typically processed in batches and is settled within 2-3 working hours

Link to Initiate Payout API.

Flow

Below is the flow for initiating a payout if the platform leverages Decentro's escrow account.

  • The platform loads the funds to the wallet virtual account from a whitelisted account.
  • The platform can either add a beneficiary and undertake a payout OR
  • The platform can undertake a payout by passing the amount, type and the source account or consumer.
  • Decentro validates the request at its end for balance, amount, etc and processes the request.
  • Decentro responds with the status of the transaction as pending or failure.
  • Decentro triggers a transaction status callback to the endpoint in case of success/failure.
  • Decentro triggers an account balance callback to the endpoint in case of a successful payout.
  • The platform might choose to check the status of a transaction using the status check capability.

Please note that the same flow is followed except for account loading if the platform is using their own account as well.

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Payouts to NRE Accounts Not Supported

NRE (Non-Resident External) accounts can only accept funds originating in foreign currency. Since Decentro processes payouts in INR, payouts to NRE accounts are not supported.

However, NRO (Non-Resident Ordinary) accounts can accept INR, and payouts to NRO accounts are fully supported.

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A lot of the banks throttle or reject transactions to the same beneficiary in a short period of time and the transactions might fail.

Decentro in such a case responds with an error if more than 1 transaction is initiated to the same beneficiary more than 5 times in an hour and a maximum of 9 times in a day.

To avoid this scenario, please batch the transactions and initiate a single payout to the beneficiary.