How can you get a payment gateway license in India?

A payment gateway in India has to create a secure tunnel through which electronic transactions can happen without compromising the data of the end users. But what is payment gateway meaning? Just like the name says, a payment gateway is a gate. It’s a way through which a tunnel is established between the seller and a electronically paying customer. The payment gateway process works in three steps:

  1. Encryption: First, it encrypts the end user data that he has entered through his browser. 
  2. Authorization: The encrypted data is directed to bank who then cross references and checks its authenticity. 
  3.  Finalization: Once the details are authenticated, the transaction takes place. 

The three steps mentioned above aren’t as simple as they seem. The legal requirements  and compliance involved with getting the PCI DSS Certification and the payment gateway license can make your head spin. 

But it doesn’t have to. Through this article, our goal is simple. Make you understand the process of getting payment gateway license in the simplest way possible. So, without any delay, let’s begin. 

What is the meaning of payment gateway license?

Before we start pocking and prodding into the process of getting the license, let’s first understand it’s significance. Electronic transactions, convenient as they are, are also quite fallible. It means that without proper oversight, it can compromise a lot personal information that can bring monetary harm to the end users. 

For that very reason, the Reserve Bank of India doesn’t allow just any to start a payment gateway for India. It has thus made payment gateway registration utmost important. By enforcing the rule that one has to get payment gateway registration, RBI has:

  1. Created a secure environment for online transactions to happen
  2. Ensures that no personal data is left in the open. 
  3. Ensured that no personal data goes into the hands of the wrong individuals. 

What is the eligibility of payment gateway license?

If you think you have the money and can cover the payment gateway charges and you think that it’s enough to get the Payment gateway registration in India, you would be wrong. The Reserve Bank of India has setup the following eligibility criteria for who can apply for the license:

  1. The applicant must be a registered business entity i.e., either a public or a private limited company. 
  2. The applicant must have the PCI DSS certification prior to applying for the license.   
  3. The company’s net worth should be at minimum INR 15 Crore.
  4. That net worth should increase at least up to INR 25 Crore within three years of operation. 
  5. In case the applicants are Non Banking Financial Companies and Banks, the applicants have to adhere to the capital requirement set by the RBI. 
  6. In case the application are neither NBFCs nor banks, the net owned funds should be at least INR 10 Lakhs. 
  7. In case of foreign entities i.e. entities with FEMA authorization, there are no minimum capital requirements. However, restrictions are put on the amount of transactions that they can do. 

What is the process of obtaining payment gateway registration in India?

Fortunately, there is an online payment gateway registration method. Unfortunately, the payment gateway certification method is still pretty convoluted. But thankfully, there are simple steps in which you can understand them:

  1. First, you need to file the payment gateway application via FORM A. Address it to the Chief of PSS department. 
  2. Once the RBI receives your application, it will be thoroughly assessed by the higher ups there. 
  3. After the superficial assessment, your application of payment gateway certificate is passed to the experts. It’s these experts that do a deeper assessment on your application and your app to see whether you complete adhere the guidelines. 
  4. Once the deeper assessment of your application concludes, you’ll receive a notification based on whether your application is accepted or rejected. If rejected, you’ll be given time and means to make the necessary rectifications and re-submit the application. If accepted, you will obtain payment gateway license India. 

What are the required documents payment gateway license RBI?

Along with the required receipt of payment gateway charges in India, you’ll also have to attach the following documents to the RBI payment gateway license application:

  1. The Certificate of incorporation of either your public or private limited company
  2. PAN card of all the promoters or directors of the company. 
  3. DSC of all the directors; to authenticate their documents. 
  4. Address proof of the registered private or public limited office address. 
  5. Bank account details so that the RBI can assess whether you adhere to the net owned funds requirement. 
  6. Your business plan for the next 5 years once you’ve paid all the payment gateway registration fees and have acquired the license. 
  7. The GST registration certificate of your company. 
  8. The source code of your payment gateway software so that it can be assessed by experts. 

What is the fee of getting payment gateway license?

The complexity of the process notwithstanding, the payment gateway registration cost is not at the lower spectrum. However, it’s only for the government charges. The professional payment gateway license cost wont’ put too much pressure on your pocket. 


If you’re looking for the right way to get RBI payment gateway registration, you’ve reached the right place. The process is a simple one, but the complex assessment combined with the high chance of rejection can push many away from chasing payment gateway license. But, we are still here to help. At affordable payment gateway license cost, our experts would conduct a thorough operation by the end of which, you’ll obtain your license to start your very own payment gateway. 

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