Payment gateway license in India is issued by the Reserve Bank of India to those companies who are tech-oriented and financially stable enough to run a electronic transaction – payment gateway – business in India. It’s for that very reason that the RBI has made the eligibility requirement for the license quite high.
When it comes to payment gateway license, India needs it at all times. During these times of pandemic where real cash is seen as a germ carrier, it’s only electronic transactions that can make people feel safe. That’s why, and to make India get closer to its dream of digitization, we have a concept of payment gateway license.
What is a payment gateway license?
Simply put, it’s the authorization to start and operate a payment gateway license in India. However, getting this authorization is not just the matter of filing the application and quick-fix license. No. one has to keep up with the eligibility criteria to even be considered for the license.
These RBI payment gateway license requirements can be divided into two parts:
- Basic Requirements, and
- Capital Requirements
Through this article, we are going to looking at these requirements and you’ll finding a way to become eligible to run a payment gateway in India.
Basic requirements to get a payment gateway license
These basic requirements are essentially the documents that you’re required to submit to the RBI in order for it to consider your application for processing. They are as follows:
- The applicant should be a company incorporated under Companies Act 1956
- That company should have at least 2 members
- The same company should have at least 2 directors
- The RBI should have a verifiable proof of your business
- You should provide the RBI with a 5-year business plan. It should be robust and should enhance your net worth by a lot.
- Your company should have a PAN card.
- You should provide the bank account details of your company and your directors
- The system flow and source code that you provide should be certified by a legitimate agency
- You should provide the GST number of your business.
- The PCI DSS compliance certificate should exist for your payment gateway.
- The receipt of the payment gateway license fees.
Payment gateway is not a simple business and like any tech-oriented businesses, it does have very steep capital requirements. These are as follows:
- If you’re a non-banking financial company or a Bank, your net worth should be at least INR 15 Crore
- That net worth should increase to INR 25 crore after three years of running the payment gateway
- If you’re a startup, the net worth requirement you need to have is INR 10 lakh.
- In case you’re trying to bring a foreign payment gateway in India, you don’t have any capital restrictions. However, the RBI does put restriction on amount that a foreign payment gateway can transact.
Read More License: FFMC License
If you’re planning to start a payment gateway, make sure that you meet the mentioned basic and capital requirements. If you don’t, the RBI will pass your application into shredder. For more about payment gateway license, and its cost. Reach out to Registrationwala.
Here are the basic and capital requirements for getting payment gateway license in India. For more information in this matter, reach out to our experts.