Tech Peak » Gain eligibility to obtain Payment Gateway License in India

Gain eligibility to obtain Payment Gateway License in India

by registrationwala
payment gateway license

Electronic transactions are all the rage in India these days. Whether you’re shopping for groceries or travelling using an auto, people have the option to pay by their respective payment wallets. All of this have only been made possible because of the rise of payment gateways. And so many payment gateways are only allowed to exist because of the issuance of Payment Gateway License. 

Payment gateway is a business that’s always going upwards. The profits are nearly always increasing and the competition is ample. However, to enter into this sector, you need the certificate of registration known as the payment gateway license. 

To obtain the payment gateway license, you need to appear worthy of it to the Reserve Bank of India. 

And, to appear worthy, you need to gain eligibility for payment gateway license in India. 

In this article, we are going to highlight the eligibility requirements to obtain this certificate of registration and will give you tips on how to fulfil them. 

You need a company to apply for the payment gateway license

When it comes to business entities, none has the respect as equal to a private limited company. Reserve bank of India only respects and trust a private limited company to run a business as nuanced as a payment aggregator. Thus,  the very first eligibility criteria that you must fulfil is to establish a company whose objective is to provide payment aggregation services. 

Here are the steps to start such a company:

  1. First, you must choose an appropriate name for the company. RuPay, PhonePe are quite straightforward when it comes to their names. You can just read them and understand from the first time the services they provide. Therefore, you must also choose a name – a unique one – that gives your customers an idea about your services. 
  2. Reserve that name: Once you’ve chosen a name, you must reserve it. You can do this by filing a Reserve Unique Name  or RUN application to the Ministry of Corporate Affairs. 
  3. Get the Digital Signature Certificate of the Director of the company. DSC is used to file the online application for company registration. 
  4. Draft MOA which will specify your business objective and draft an AOA to specify the rules and regulations of your company. 
  5. Furnish the following documents:
    1. Memorandum of Association
    2. Articles of Association
    3. Photo IDs of the company directors 
    4. Address proof of the company directors. 
    5. Address proof of your proposed company’s registered office.
    6. Stamp Duty (whose cost will be a percentage of the authorized capital of your company)
    7.  Architectural design of your office
  6. Submit the online application Spice form for company incorporation
  7. Get the Certificate of incorporation

Meet the funding requirements

Unlike a startup a payment gateway aggregator has to be financially stable. Hence, the net worth requirement for the payment gateway license is quite high. Simply put, you must have the net worth of INR 15 Crore to apply for the license. 

Now, if you’re a starting entrepreneur with the technical knowledge to establish a payment gateway but lacking the financial backbone, you’d need assistance with funding. That’s where startup registration comes in to aid. 

When you get startup registration certificate, you get a chance to tap into many government schemes to fulfil this net worth requirement through funding. You can ask the government. Or, if you have a way with words and can come up with a good business plan, you on onboard investors. 

You must increase your net worth by 25 Crore by the end of three years

You don’t only need a business plan to show off your investors, but also to the Reserve Bank of India. In RBI’s eyes, it is investing in your payment gateway by issuing you a license. Thus, it requires a robust business plan from you. It must be a plan that can guarantee to increase your net-worth to INR 25 Crore by the end of three years of operation. 

You can consult with Chartered Accountants working within the business planning domain to provide you assistance in that regard. 

Also Check – IRDA License Process

 Finally, you must have PCI DSS Authorization

The Payment Card Industry Data Security Standard  or PCI DSS stands at the core of what makes a payment gateway powerful. It has specified the guidelines and the technical requirements a payment gateway must fulfil before it’s allowed integration with a merchant. 

Thus, before you can file the application for payment gateway license to the RBI, you must appease PCI DSS. Provide them with the source code of your gateway and make sure to:

  1. Include a robust encryption to provide data security to the users
  2. Provide smart code integration to speed-up the transaction process, and
  3. Include a secure tunnel so that no one can observe the transaction. 

Fulfilling the above leads the PCI DSS to believe that your payment gateway is worth it. As a result, you get one step closer to get RBI payment gateway license. 


Establishing a company, meeting the funding requirements, having a good business plan and PCI DSS certification – these are the only criteria you need to fulfil to obtain Payment gateway license. Even though less in number, these requirements are of a tall order. Thus, you’d need all the aid you can get to fulfil them. 

Gain eligibility for payment gateway license by reaching out to Registrationwala. We can definitely help, all you need to do is ask.

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