What are the Basic Payment Gateway License Requirements?

  • September 10, 2022
  • Registrationwala
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Payment Gateway License, is one of the latest authorization by the Reserve Bank of India. It exists under the legal framework that monitors electrical transactions.

By getting the payment gateway license, the licensee pledges that:

  1. It will conduct its business without any malicious intent. 

  2. It will not compromise with the data of the end users. 

  3. It will protect the confidentiality of the customers (payees).

In this day and age, where digital economy is on the rise, it’s pretty profitable to start a business operating a payment gateway in India. If you’re the one who sees the profit here, and want to get the license for yourself, then this blog will be very informative. So, let’s discuss the basic payment gateway license requirements. 

Requirement 1 : A registered business entity

You need to have a strong infrastructure if you want to run a business related to payment gateway. Meaning that you need to have a registered business entity, which in this case would be a company. In this company, you should have at least two directors and two shareholders. 

Requirement 2: Capital requirement

It’s implied without saying that it’s expensive to run a payment gateway business. So, if you’re planning to step your boat in this business sea, you better have a strong capital boat. To simplify the metaphor, you need at least INR 15 Crore of capital net worth of INR 15 Crore. Those 15 Crores should increase to INR 25 Crores within the 1st three years of business.

Requirement 3: Mention the address details of the business office

Provide thorough information about the place from which you’re operating your payment gateway operations. In the application you’re required to file for the payment gateway process, mention your address details. 

Requirement 4: PCI DSS Compliance certification

PCI DSS or Payment card Security Data Security Standards certification of PCI DSS certification is a major requirement. It’s an independent compliance certificate that you get  on two conditions. One, your payment gateway system provides thorough transactions. And two, during those transactions no user data is compromised. 

Requirement 5: Business strategy for the next five years

Think of the payment gateway license registration process in the same way you’d when you prepare an investment pitch. In this pitch, create a roadmap of your payment gateway business for the next five years. 

Also Read: How Can You Legally Establish a Payment Gateway in India?

Requirement 6: Company’s Bank Account details

Provide all the details pertaining to the bank account of your company. Provide details related to the PAN card in that information sheet. 

Requirement 7: data flow diagram of the payment gateway

Create a document in which you’d explain the working of your software. Within it, draw a system flow – a data flow diagram that showcases how the user data flows from one component to the next. Also provide use case diagrams, and activity diagrams to make payment gateway process a success. 

Requirement 8: GST registration certificate

GST registration certificate is not optional. You need to prove that you’re a tax paying citizen if you’re willing to pay payment gateway charges for application filing. 

Requirement 9: Source code of your payment gateway

Provide a software code so that the in house IT consultants of RBI can assess your software properly. 

Without the right requirements, you can’t get the license

Whether or not you’ll be able to procure the payment gateway license depends on two things:

  1. Are all your documents in order?

  2. Have you reached out to the right consultants for assistance?

Both are important. But, if you want to provide the right documents from the start, you need to associate yourself with the right consultants. 


The requirements for payment gateway license suggest that the Reserve Bank of India leaves nothing to change. You have to be unambiguous when you’re providing the documents. Leave no detail unmentioned. Be transparent. And, most importantly, be thorough. If you follow these tenets, no one can stop you from getting the payment gateway license.

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