There are 3 modes of refund powered by Shiprocket.
Store Credit: If the buyer has chosen Store Credit as a refund option, you can create a Discount Coupon for the amount of the refund and share it with the buyer directly from the Seller Panel.
Bank Transfer: With Bank Transfer refund mode, the buyer will enter the necessary bank details while raising the return request. You can transfer the refund amount to the provided bank account details.
Source Account: If the buyer chooses Source Account as the refund mode, you must transfer the refund amount to the same source that was used for the forward order transaction.
You can configure your Refund Settings from Settings >> Refund Settings.