All node accounts are internal accounts of the bank. They facilitate the collection of payments by intermediaries of customers. Thus, payments are first recovered from this account on behalf of intermediaries. This account would only be controlled and managed by the bank. The intermediary cannot use the funds in this account for personal interest and has no control over transactions or funds. A node account ensures that the money does not belong to the intermediary at any time. This creates the confidence gap that could exist in the emerging internet economy. With Cashfree`s Marketplace Settlements, you can focus on building your business as a market. And, it takes care of your entire collection, payment, compliance requirements and node account.
We offer an elegant, simple and powerful API that your business can benefit from. It would take considerable effort, time and resources for a marketplace or a company to implement such a system. Check all the points above. Taking this dilemma into account, Cashfree has developed a solution. It is customary for intermediaries to open a current account with the bank while creating node accounts. In theory, node accounts do not need the intermediary`s KYC, since it is legally owned by the bank. However, in practice, KYC is made available when you set up a current account. A buyer interested in buying the home can use a receiver account to park the money (for the total value of the home) and make partial payments, depending on the amount of completion described in the terms of the purchase agreement. It takes into account the amount on which the recipient was transferred and the final balance for the review period. The balance of the financial statements should be compensated, with the exception of the amounts of repayments and losses resulting from fraud and refunds/litigation.
With regard to online markets, in order to expedite the processing of payments from customers to sellers and to reduce the risk of the intermediary`s failure (which is an online marketplace), the RBI has required the retailer to charge/pay the seller the money that will be received from customers within 2 days. The “T” is defined here as the day the seller is considered to have been delivered. This means that you have to pay the seller in the T-2 days if you receive the money today, if the seller is shipped and the goods are delivered on T-day. You should open a nodule account with one of the banks, and your node bank must ensure that the payment is released as part of T-2 to the seller. There would be simultaneous audits of your account and you should forward the details of your transactions to RBI. Quarterly submission of a simultaneous review certificate to the Department of Payment and Settlement System, Reserve Bank of India. The audit can also be carried out by banks when accounts are complex. They would pay the review fee for the same negotiations as those under the agreement.