With the objective of providing automated, compliant, and secure money transfer experience on Escrow accounts to businesses, RazorpayX, the business banking platform of Razorpay, today announced the launch of ESCROW+ solution, powered by Axis Trustee Services Ltd, RBL Bank & ICICI Bank.
In certain industries, receiving funds in a current account is not an ideal solution for a business as 100% of the money in the account doesn't belong to the business. These businesses either receive funds on behalf of others or operate under a partnership model in which funds from another business entity are in their current account to manage operations. This complicated money flow could lead to a foreseen compliance issue causing hefty penalties for businesses.
RazorpayX's ESCROW+ solution aims to address such pain points, first by providing an Escrow trustee who is vetted and on-boarded by RazorpayX. Second, by providing merchants with an Escrow account to route funds they are receiving on behalf of end beneficiaries, ensuring the right tax treatment and reporting. Moreover, the automated processes facilitated by Escrow+ assure higher success rates and seamless payouts, enhancing overall payout performance.
