T+N settlement
A settlement convention in which final transfer of funds (or securities) occurs N business days after the trade or transaction date, where T is the trade date and N is the lag in days.
T+N is shorthand for the gap between when a transaction is agreed and when funds (or securities) actually move. T+0 means same-day settlement; T+1 means one business day later; T+2 was the long-standing global equity-settlement standard until US, Canadian, and Mexican equity markets moved to T+1 in May 2024 and Indian equity markets had already moved to T+1 fully by January 2023.
In payments and merchant-acquiring contexts, T+N describes the settlement lag from a card or UPI capture to the merchant's bank credit. Razorpay's standard plan is T+2 with optional T+1 or instant settlement at higher fees; PhonePe and Cashfree publish similar tiers. The exact business-day calendar matters — settlements due on a Saturday roll to the next working day, which is itself a common reconciliation exception.
From a reconciliation perspective, T+N affects which settlement file should be expected on which date. A reconciliation engine that does not model the settlement calendar will systematically flag legitimate cycle-end settlements as missing on weekends and holidays.