Escrow Basics
Escrow Use Cases
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July 7, 2025
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6 MINS READ

In today's fast-paced digital economy, the payment landscape in India has undergone a remarkable transformation over the last ten years. We've shifted from relying on cash to embracing a range of digital-first solutions, giving businesses a plethora of payment options to efficiently manage their funds. To truly optimize financial operations and enhance customer experiences, it's crucial for any enterprise to grasp the intricacies of each payment method.
In this blog, we’ll dive into the key payment methods that are popular in India and discuss how businesses can take advantage of them to make transactions smoother.
1. NEFT (National Electronic Funds Transfer)
NEFT stands as one of the most established and trustworthy electronic fund transfer systems in India. Overseen by the Reserve Bank of India (RBI), NEFT enables both individuals and institutions to transfer money between banks on a deferred net settlement basis.
While NEFT transactions were once processed in hourly batches, they are now available around the clock, with settlements every half hour. This method is frequently used by businesses for vendor payments, salary disbursements, and settling utility bills.
Use Case: Perfect for high-value transactions where immediate confirmation isn’t necessary, as well as for scheduled recurring payments.
Key Features:
Available 24/7, including weekends and holidays.
Great for planned vendor or salary payments.
No minimum or maximum transaction limits.
Best Suited For:
Businesses that handle regular payouts.
Companies aiming for secure bank-to-bank transfers.
2. RTGS (Real-Time Gross Settlement)
RTGS is tailored for those big-ticket transactions that need to clear right away. It handles payments one at a time, ensuring that each transaction is settled instantly without any delays or batching.
Typically, RTGS is the go-to for businesses or institutions dealing with urgent payments of ₹2 lakh or more. It’s regulated by the RBI, offering a secure environment for those high-stakes fund transfers.
Use Case: High-value transactions, business settlements, institutional disbursements.
Key Features:
Instant fund settlement.
Secure and overseen by the RBI.
Mainly used for B2B payments.
Best Suited For: Large enterprises that need to quickly settle high-value payments.
3. IMPS (Immediate Payment Service)
IMPS is a real-time electronic fund transfer system that’s available around the clock, even on weekends and holidays. Launched by NPCI, IMPS is perfect for retail customers who need to make instant payments under ₹5 lakh (depending on their bank’s limits).
You can access IMPS through mobile apps, ATMs, internet banking, or even SMS. It supports both person-to-person (P2P) and person-to-merchant (P2M) payments, making it a flexible option for consumers and businesses alike.
Use Case: Retail purchases, small business transfers, urgent money needs.
Key Features:
Real-time processing.
Accessible via mobile, internet banking, and ATMs.
Available 24/7.
Best Suited For:
Small businesses and startups.
Instant salary payments and vendor transactions.
4. UPI (Unified Payments Interface)
UPI has quickly become one of the most favored payment methods in India, allowing for real-time money transfers between bank accounts using just your mobile phone. Developed by the National Payments Corporation of India (NPCI), UPI supports both peer-to-peer (P2P) and peer-to-merchant (P2M) transactions.
UPI makes payments a breeze! Users can easily pay through virtual payment addresses (VPAs), QR codes, or even just their mobile numbers. It enables instant bank-to-bank transfers and has gained popularity for both personal and business transactions.
Use Case: Perfect for small to medium payments, merchant collections, bill payments, and quick fund transfers.
Key Features:
Transfers available 24/7 in real-time.
Low transaction fees.
Simple integration with mobile applications.
Best Suited For:
E-commerce and retail platforms.
Businesses that want to offer instant checkout experiences.
5. eNACH (Electronic National Automated Clearing House)
eNACH is a handy electronic payment service designed to automate recurring transactions like loan EMIs, insurance premiums, utility bills, or subscription fees. It allows customers to set up standing instructions for automatic debits from their bank accounts.
This service is particularly beneficial for businesses that provide subscription-based services or recurring payments, making manual payment collection a thing of the past.
Use Case: EMIs, SIPs, subscription payments, utility bill collections.
Key Features:
Automates collections for EMIs, subscriptions, and utility bills.
Supports both one-time and recurring mandates.
Regulated by NPCI.
Best Suited For:
Subscription-based businesses.
NBFCs, loan providers, and fintech platforms.
6. QR Code-Based Payments
QR code payments have quickly become a favorite method in offline retail and service environments. Customers just scan a QR code with any UPI-enabled app, enter the amount, and make their payment instantly.
This approach has transformed micro-payments and street-level commerce in India, providing a smooth and cost-effective payment option for merchants.
Use Case: Local retail, food vendors, taxis, service providers.
Key Features:
Quick and contactless.
No need for PoS systems.
Works with various apps and wallets.
Best Suited For:
Retailers, restaurants, and local vendors.
Businesses seeking fast in-store transactions.
7. BBPS (Bharat Bill Payment System)
The Bharat Bill Payment System (BBPS), created and overseen by the National Payments Corporation of India (NPCI), serves as a comprehensive hub for all recurring payments in India. Its main goal is to make bill payments easier and more uniform across various utility sectors like electricity, water, gas, telecom, DTH, and beyond. BBPS connects a network of billers and payment service providers on a single platform, allowing customers to pay their bills through various channels whether online, via mobile apps, or at agent-assisted centers using a wide array of payment options. With features like real-time confirmations and centralized complaint management, BBPS fosters trust and convenience in the bill payment process.
Use Case: A fintech app allows users to pay their electricity, gas, and broadband bills all in one place using BBPS.
Key Features:
Provides a unified platform for different bill categories.
Functions both online and offline.
Secure and standardized.
Best Suited For:
Utility companies.
Fintech apps that offer bill aggregation services.
8. Payment Gateways
Payment gateways are essential for online commerce, enabling businesses to accept digital payments from customers quickly and securely. They act as the link between a merchant's website or app and financial institutions, facilitating real-time transaction processing through credit/debit cards, UPI, net banking, and digital wallets. A strong payment gateway not only ensures a smooth checkout experience but also comes equipped with tools for managing refunds, detecting fraud, ensuring compliance, and supporting international payments. As consumers increasingly seek seamless digital experiences, having a reliable payment gateway is crucial for any business operating online.
Use Case: An e-commerce website integrates a payment gateway to allow instant online payments via cards, UPI, and wallets during the checkout process.
Key Features:
Provides seamless checkout experience.
Supports refunds and chargebacks.
Offers fraud detection and compliance tools.
Best Suited For:
E-commerce platforms.
Subscription-based services.
Conclusion
Selecting the right combination of payment methods is crucial for boosting your cash flow, strengthening vendor relationships, and enhancing customer satisfaction. Each payment option brings its own set of benefits, tailored to your business model, transaction volume, and customer demographics.
About Castler: Castler stands out as a top-tier B2B payments and escrow infrastructure platform, providing a comprehensive range of payment solutions such as UPI AutoPay, eNACH, QR collections, BBPS, and bank transfers. With Castler, businesses can automate, streamline, and secure their payment processes within a safe, RBI-compliant framework.
Written By

Chhalak Pathak
Marketing Manager