How to acquire Payment Gateway License in India

Payment gateway license is issued by the Reserve Bank of India to those with access to payment gateway technology to provide electronic transaction services in India. Because of the importance of this service, the RBI has made the certification process of a payment gateway a difficult. It has therefore set proper:

1. Eligibility Criteria
2. Process
3. Documents, and
4. Cost

To obtain payment gateway license in India. You can also go through tec certification.

How you can you become eligible for payment gateway license in India?

Reserve bank of India have set high standards when deciding who to issue the license to. In that regards, it has set two different categories of eligibility criteria;

1. Technology Criteria
2. Net worth Criteria

Technology Criteria

Following are the technical criteria that your payment gateway software should follow to become worthy of payment gateway certification:

1. The payment gateway should be designed by experts who have certification in the field of software development.
2. The payment gateway should be intuitive and user friendly.
3. The payment gateway’s technology should have the certification from Payment Card Industry Data Security Standard.

Net worth Criteria

Following are the points present in the eligibility criteria pertaining to the net worth of the applicant:

1. The net worth of the payment gateway company should be INR 15 Crore.
2. Within the first three years of operation, that net worth should increase to INR 25 Crore

Note: To assure the RBI that you can in fact enhance your net worth by the end of three years of operation, you should present with a good business plan.

Read Other Useful Blog: EPR Certificate

What is the process to obtain RBI payment gateway license?

The steps to obtain the RBI payment gateway certificate are as follows:

1. First, the payment gateway business must be incorporated as a company.
2. The certification of the payment gateway by the PCI DSS body.
3. Filing on offline application for payment gateway certification.
4. Assessment of the application by the Reserve Bank of India.
5. After the application is assessed, you’ll obtain the payment gateway license in India

Obviously, a lot more is involved with processing than a mere short words, but let’s not get ahead of ourselves.

Documents you’re required to submit in order to obtain the payment gateway certificate in India

Following are the documents that RBI requires to assess your payment gateway and grant you permission run it:

1. Certificate of Incorporation of your company
2. MOA and AOA of your company
3. List of directors of your company
4. Shareholders in your company
5. Audited balance sheet of your company
6. Net worth certificate of your company (Audited by the experts)
7. PCI DSS Certificate

Cost of starting a payment gateway in India

The cost of starting a payment gateway in India is divided in the following terms:

1. The application processing fee
2. The entry fee
3. The net worth requirement
4. The infrastructural setup fee
5. The company incorporation,
6. and finally, the professional feel.

The payment gateway license cost, considering is the sum of the above, can appear to be quite high to many. Thus, it’s better to reach out to the consultants who can help you finance your license.

How to acquire payment gateway license in India? This blog explains this to you in simple words that you can understand.