What are the RBI guidelines for payment gateways in India? How to get the license for the same?

Jul 7 18:55 2021 GreatDeerYouth Print This Article

What is payment Gateway License


A payment gateway allows a user to conveniently transfer money from one bank account to another in a cashless manner. Naturally,Guest Posting it involves a system that has to be watched over by both the technical experts and a regulatory authority. The regulatory authority that watches over, and formulates guidelines for a payment gateway in India is the Apex bank of India, the RBI.

When it comes to the guidelines that RBI for the payment gateways in India there are too many to speak off and they change on an yearly basis. However, there are some that stay constant.

So let’s discuss them through this blog.

Guidelines for payment gateways and Payment aggregators in India

Let’s first understand the difference between payment gateways and payment aggregators. While they are empirically the same thing, the power to run payment gateways is not given to private institutions, unless they are banks. Thus, if you’re a private business entity, after obtaining the payment gateway license, you’ll be known as a payment aggregator. You’ll have the same, albeit a bit reduced power as compared to the banks.

RBI payment gateway license guidelines are applicable to the following entities:

  • Payment aggregators
  • Import/Export payments facilitated by payment aggregators

Note: The guidelines are not valid on COD (Cash on delivery)

Following are the seven guidelines for payment gateway aggregators in India:

  • The Payment Aggregator should be capable to act as an intermediary for handling electronic transactions.
  • Banks and NBFCs can start payment gateways as part of their “banking license”. Payment gateway aggregators on the other hand have to obtain Payment gateway license as per the Payment and Settlement Systems act.
  • The Payment aggregators can only be those entities that have been incorporated as per the Companies Act 1956/2013.
  • The Memorandum of Association (MoA) of the Payment aggregator should specify that their primary service is to facilitate electronic transaction.
  • E commerce portals won’t be allowed to act as a payment aggregator unless they have the license for the same from the RBI
  • Banking entities that have been providing payment gateway services have till the end of June 2021 to get the authorization to provide said services. Afterwards, they need to obtain permission from the RBI for the same.
  • The application of payment gateway license has to be filed offline.. The form that the applicant has to use is Form A and it has to be submitted to the Department of Payment and Settlement Systems.
How to get payment gateway license in India?

Now that you’ve gained awareness of the RBI guidelines for Payment aggregators, let’s now discuss the process to obtain payment gateway license in India.

  1. Draft a business plan of your payment gateway business.
  2. Incorporate that business as a Payment aggregator company under the Companies Act 2013
  3. Go the RBI website and download FORM A.
  4. Fill the form and submit it offline to the Department of Payment and settlement System. The process is yet to be made online thus, you need to submit it at the department head office in Mumbai. Alongside the application, you’re required to submit the following documents:
    1. Certificate of Incorporation of your payment aggregator company.
    2. PAN card of all the directors
    3. DSC of all the directors
    4. Address proof of the registered office of the company
    5. Bank account details of the company
    6. Business plan of the company
    7. GST registration certificate
    8. Source code of the payment gateway
  5. The application and the documents you’ve attached to them will be assessed by the Apex bank of India.
  6. If the RBI deems that you meet the regulatory criteria to act as a payment aggregator, you’ll be issued the Payment gateway license in India.

The above mentioned RBI guidelines for payment gateways in India might exist till the end of time. And the procedure might become online in future. For more updates about payment gateways in India, stay in touch with Registrationwala’s blogs. We are always making complex licenses simple for you.


This blog will provide you a brief list of RBI guidelines for payment gateways in India. It will also provide you with the process to obtain Payment Gateway License. For further details, call Registrationwala.

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