payment gateway license

A brief look into payment gateway license in India

If you’re looking for a good business idea considering you’ve a good financial background, go for a payment gateway license. With India moving towards digitization and presence of mediocre electronic payment service providers, getting payment gateway registration gives you a way to penetrate your market and grow.

However, the talk about growth and penetrating a crowded market is a topic for another day. For now, let’s take one step at a time and take a brief look into the payment gateway license.

What kind of payment gateway gets the payment gateway license?

The most obvious meaning of a payment gateway license is that it’s a permit to start a payment gateway and enable through it electronic transaction services for the people.

However, Reserve bank of India, being a hater of everything new, has created very specific restrictions on what type of payment gateways it wants in India. As per the rules of payment gateway license, the payment gateway should provide the following to get the permit to operate:

  1. The payment gateway should place right security measures to hide the personal data of the users.
  2. The payment gateway should have a failsafe in case the transactions don’t go smoothly.
  3. The payment gateway operator should have specific policies in place and those policies should be explained to the end users in a clear and concise manner.
  4. There is a limit to how many failures a payment gateway can face in a day.

To get the gist of above points, to file the payment gateway application, the technology behind your payment gateway should be:

  1. Flawless so that it doesn’t suffer from downtime,
  2. Secure so that the confidential banking information of the end users is protected,
  3. Policy-centric – obeying the rules of the RBI payment gateway license.

What kind of eligibility criteria you have to meet to get the payment gateway license in India?

If you’re running a business that has the level of complexity akin to a payment gateway, you should have the financial backing to support the business. Additionally, your technology should be a one that has the approval of the debit card industry.

Combining all these factors together, and adding a few more, following  is the list of eligibility criteria to make you successful at getting payment gateway license RBI:

  1. The net worth of those applying for the license should be at least 15 Crore rupees
  2. The applicant should have a business plan that can guarantee to increase the net worth of the company by 25 Crores within 3 years of getting the license.
  3. The payment gateway should have the approval of PCI DSS or Payment Card Industry Data Security Standard.

Getting the payment gateway license

Following are the steps of payment gateway license process:

  1. Company incorporation
  2. Creation of a business plan
  3. Filing the application of payment gateway license India.
  4. Submitting the required documents with the application for payment gateway license.
  5. Analyzing the payment gateway license cost and paying it for the application to get processed by the Reserve bank of India.
  6. Waiting as the RBI picks up your application, and scrutinizing it from cover to cover.
  7. If the application is deemed worthy of registration, you’ll obtain the payment gateway license.

Other Useful Content: IP1 License

Documents required for online payment gateway license

Whether you’re filing the application for payment gateway license online or offline, you need to have the right documents. It’s these documents based on which the RBI deems you worthy (or unworthy) of payment gateway license:

  1. Incorporation Certificate
  2. Director’s PAN card
  3. Director’s DSC
  4. Address proof of the head office of payment gateway company
  5. PCI DSS certificate
  6. Bank details of the directors.
  7. Business plan of your payment gateway enterprise.
  8. GST registration certificate. Get it if you don’t possess it yet.
  9. Source code of the payment gateway.

And that’s all it is to payment gateway license in India.

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