Razorpay Setup Guide for Housing Societies — Online Maintenance Payments

Why Razorpay

For Indian housing societies, Razorpay is the most popular payment gateway because:

• Supports UPI, cards, net banking, wallets — covers 100% of resident payment preferences
• Settlement to society bank account in T+2 (2 business days)
• 2% transaction fee for cards (excluded by GST), 0% for UPI under ₹2,000
• Easy KYC for societies (vs Stripe / PayPal which don't accept Indian societies)
• Built-in payment reminders + auto-collect features

Step 1 — Open the right society bank account

Before applying for Razorpay, open a current account in the society's name (not any committee member's personal account). Most banks (HDFC, ICICI, Axis, SBI) have dedicated cooperative society / AOA account types.

You'll need:

• Society registration certificate
• Bye-laws
• AGM resolution authorising account opening + signatories
• PAN card in society name
• Address proof
• KYC of 3 office bearers (President, Secretary, Treasurer)

Step 2 — Apply for Razorpay account

Go to dashboard.razorpay.com → Sign up → choose "Business" type "Society / Trust / NGO".

Documents needed:

• Society registration certificate (PDF)
• PAN card in society name (PDF)
• Society's current account cancelled cheque or bank passbook first page
• Authorisation letter signed by all office bearers (template provided by Razorpay)
• KYC of one designated authorised signatory (Aadhaar + selfie)

Razorpay typically approves society accounts within 5-7 business days.

Step 3 — Configure settlement schedule

In Razorpay dashboard → Settings → Settlements:

• Choose "T+2" (2 business days) for free settlement
• "T+1" available for 0.1% fee (worth it for 50+ unit societies)
• Settlement happens to your linked society bank account automatically

Step 4 — Add payment methods

Enable in Razorpay dashboard → Settings → Payment methods:

• ✅ UPI (essential — 70% of payments)
• ✅ Cards (debit + credit)
• ✅ Net banking (HDFC, ICICI, SBI, Axis at minimum)
• ✅ Wallets (Paytm, PhonePe, Mobikwik)
• ❌ Pay Later (BNPL — usually not appropriate for society dues)
• ❌ EMI (residents shouldn't EMI maintenance bills)

Step 5 — Integrate with HiSociety

In HiSociety:

1. Society Settings → Payment Gateway → Razorpay
2. Enter Razorpay Key ID + Key Secret (from your Razorpay dashboard)
3. Test transaction (₹1) to verify
4. Enable on invoices

Now every invoice has a "Pay Now" button. Resident clicks → Razorpay UI opens → they pay → invoice auto-marks paid → receipt auto-sent.

Step 6 — Set up auto-collect (for monthly auto-debit)

For long-term residents, set up Razorpay's auto-collect (NACH e-mandate):

• Resident authorises one-time via UPI / net banking
• Every month, the maintenance amount is auto-debited
• No more chasing payments

This works best for 50%+ of residents in stable societies. Reduces collection effort by 80%.

Razorpay fees breakdown

| Method | Fee | When deducted | |--------|-----|---------------| | UPI ≤ ₹2,000 | 0% | — | | UPI > ₹2,000 | 0% (most plans) or 0.5% | Per transaction | | Debit card (non-RuPay) | 2% + 18% GST | Per transaction | | Credit card | 2% + 18% GST | Per transaction | | Net banking | 2% + 18% GST | Per transaction | | Wallets | 2% + 18% GST | Per transaction | | NACH e-mandate setup | ₹6 + GST | One-time per mandate | | Auto-collect monthly | ₹3 + GST | Per successful collection |

Who pays the fee — society or resident?

Two approaches:

• Society absorbs: Maintenance amount stays the same; society bears 2% as cost of collection. Cleaner UX.
• Resident pays: Add a "Convenience Fee" line item. Some residents resist this.

Most societies absorb because the time saved (no chasing, instant reconciliation) is worth way more than the 2%.

Common reasons for Razorpay rejection

1. PAN/account name mismatch — society name on PAN must exactly match bank account name
2. Missing AGM resolution — Razorpay needs explicit board authorisation
3. Inactive bank account — account must have a transaction in the last 6 months
4. Wrong account type — savings account often rejected; current preferred
5. Incomplete KYC of signatory — Aadhaar + selfie + PAN of authorised signatory required

Settlement reconciliation

Razorpay sends a daily settlement statement showing:

• Gross collection (sum of payments)
• Razorpay fee
• Net amount transferred to bank

In HiSociety, this auto-reconciles with your invoice payments. No manual matching.

Conclusion

Razorpay for societies is a 1-week setup that pays for itself in saved treasurer hours within a month. Combined with HiSociety's billing module, it's the closest you can get to "maintenance collection on autopilot" in 2026.

Read next