Ladakh - Apply for Payment Gateway License

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Procedure

Apply In-Person:

1. To Apply for Payment Gateway License, the applicant must approach the RBI’s regional office in their respective state link

Note: The applicant has to click on “Contact us-Regional Offices” and click on their respective state to find offices.

1. An application form will be provided to the applicant by the concerned officer. Or the applicant must download the application form from the following link – link
2. The applicant must fill in all the necessary details in the application form. (Incomplete applications are not accepted)
3. Make sure that the applicant has attached all the necessary documents that are mentioned in the “Required Documents” section of this page.
4. The applicant must attach the photocopies of the required documents along with the application form while submitting.
5. Submit all the documents with the completed form to the concerned officer.
6. An electronic funds transfer transaction No or cheque or payment order or demand draft No dated for an amount of Rs 10,000 (Rupees Ten Thousand only) as non-refundable application fees are enclosed with the application
7. After receiving the application, the concerned authority will check the submitted application and document set. If all are in place, the application will be accepted.
8. The regional office shall check the accuracy of all submitted documents. The regional office will send the application to the central office.
9. All applications are processed within a reasonable time, having regard to the circumstances of each application, including the completeness of information and documents submitted to the authority by the applicant.
10. The authority may seek additional information from an applicant if this is necessary to assess the application. The authority does not need to deal further with an application until the applicant has provided this additional information.
11. Once RBI finds that you've provided the correct application, they start scrutinizing the application based on the following points:
12. Technical standards are implemented in developing the proposed payment system
13. Security systems are implemented to conduct electronic transactions through your payment system
14. Method of transfer used in your payment system
15. Method of dispensing the payment instructions to the user, and how does it affect their payment obligations
16. Financial stability is the applicant
17. terms and conditions to govern the relationship between the payment providers and the customers
18. Monetary and credit policies you have implemented
19. Once the RBI authorizes your application, it will send you the payment gateway certification for conducting payment gateway business in FORM B.
20. This entire process can be completed within 6 months or as per the timeline advised by the respective department authority.

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Required Documents

• Completed application form link

Company Documents:

• Certificate of Incorporation
• Memorandum and Articles of Association (MOA and AOA)
• Board resolution for applying for a Payment Gateway License
• Shareholding pattern of the company
• Latest audited financial statements
• Banker's report on the applicant company's financials

Business Plan and Model:

• Detailed business plan outlining your payment gateway's operations, target market, revenue model, and growth strategies.

Technology Infrastructure:

• Details of your payment processing technology and infrastructure, including information on security measures and data protection.

Security and Compliance:

• Information on compliance with security standards, such as PCI DSS (Payment Card Industry Data Security Standard) certification.
• Security policies and protocols for protecting user data and transaction information.

Key Personnel Information:

• Background and qualifications of key personnel, directors, and promoters of the company.
• Details about their experience in the payment industry.

Operational Information:

• Details of your payment gateway's operational processes, including how transactions will be processed, settlement timelines, and dispute resolution mechanisms.

Agreements and Partnerships:

• Agreements with partner banks, payment networks, and other stakeholders involved in the payment processing chain.

Ownership and Shareholding:

• Details of the ownership structure and shareholding pattern of the company, including information about significant shareholders.

Additional Required Information link

Office Locations & Contacts

RESERVE BANK OF INDIA (RBI)


Department of Payment and Settlement Systems
Chief General Manager
Central Office
14th Floor RBI Central Office Building
Shaheed Bhagat Singh Marg
Mumbai –400001
Phone - 22644995
Email - [email protected]
Contact Details – link
Regional Offices – link
Note: The applicant has to click on “Contact us-Regional Offices” and click on their respective state to find offices.

Eligibility

The eligibility criteria to get the payment gateway license are listed below

• The applicant company should typically be a registered company in India. It could be a public limited company, private limited company, or other legally recognized business entities.
• Payment gateways need to comply with certain security standards, including PCI DSS (Payment Card Industry Data Security Standard) compliance, to protect user data and ensure secure transactions.
• The net worth of the Company should be at least 15 Crore.
• The net worth should increase to INR 25 Crores within 3 years of operation.
• The applicant needs to have a robust technology infrastructure to ensure the security and reliability of the payment system.
• If the applicants are NBFCs or banks, then only those who adhere to the capital requirements specified by RBI are eligible for the payment gateway license.

Fees

• An electronic funds transfer transaction No or cheque or payment order or demand draft No dated for an amount of Rs 10,000 (Rupees Ten Thousand only) as non-refundable application fees are enclosed with the application.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

• Application form – link

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• This entire process can be completed within 6 months or as per the timeline advised by the respective department authority.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
• Applicants must provide genuine information while applying for this procedure.

Required Information

• Name of applicant
• Constitution of applicant
• Address of Registered Office and Principal Offices (if applicant is a company)
• Principal place of business and address (if applicant is a firm or any other entity)
• If applicant is a firm, names, nationality and addresses of the partners
• Date of incorporation of applicant if it is a company
• Date of commencement of business
• If the applicant is any other entity, name, nationality, and address of each of its directors/managers/principal officers
• Main business of the applicant company /firm / other entity
• Names and addresses of subsidiary companies/ associated firms / other associated entities
• Management information, if applicant is a company / firm / any other entity
• Name of Chief Executive
• Age, Nationality, Qualifications and Experience of Chief Executive
• Shares held by the Chief Executive and Directors in the applicant company
• Name of the statutory auditors and their business address
• Name and address of bankers of the applicant
• Amount of fees deposited along with application
• Mode of deposit of fees

Need for the Document

• A Payment Gateway License refers to the authorization granted by regulatory authorities, such as the Reserve Bank of India (RBI) in India, to a company allowing them to operate as a payment gateway. A payment gateway is a technology-based service that facilitates the secure processing of online transactions, primarily related to electronic payments, credit card transactions, and other forms of digital payments.

Information which might help

Here are the benefits of obtaining a Payment Gateway License:

• Legitimacy and Trust
• Regulatory Compliance
• Access to Payment Systems
• Partnerships with Banks and Financial Institutions
• Enhanced Security
• Customer Confidence
• Global Expansion
• Customization and Control
• Compliance Expertise
• Revenue Generation

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Payment and Settlement Systems Act, 2007 link

Others

There are two components of an Online Payment Gateway:
Merchant Agreement

• Those with the Payment Gateway license RBI first get into an agreement with the merchant that uses the gateway.

Secure Electronic Transactions

• It's a security system that verifies user information without peeking into it. In doing so, it authenticates the information without compromising the user's Credit card/ debit card/ net banking information.