WHAT IS PAYMENT AGGREGATOR LICENSE IN INDIA – CORPZO

What is Payment Aggregator License in India – Corpzo

What is Payment Aggregator License in India – Corpzo

Blog Article

As digital payments continue to grow in India, businesses offering online transaction services are under increasing regulatory scrutiny. To streamline and safeguard this ecosystem, the Reserve Bank of India (RBI) has introduced the Payment Aggregator (PA) License — a mandatory requirement for all payment gateways and aggregators operating in India.

In this article, Corpzo, your trusted legal and compliance partner, explains what a Payment Aggregator License is, why it's essential, and how your business can obtain it.

???? What is a Payment Aggregator?

A Payment Aggregator (PA) is a service provider that enables e-commerce platforms or merchants to accept payments from customers through various digital payment modes — such as credit/debit cards, UPI, net banking, and wallets — without the need for a direct merchant account with a bank.

Popular payment aggregators in India include Razorpay, Cashfree, Paytm, and Instamojo. These platforms collect payments on behalf of merchants and then settle them after deducting transaction fees.

???? What is the Payment Aggregator License?

Introduced under the RBI Guidelines on Regulation of Payment Aggregators and Payment Gateways (March 2020), the Payment Aggregator License is a legal authorization granted by the RBI that allows companies to operate as intermediaries for digital payments.

Under the new regulations, all non-bank entities acting as payment aggregators must obtain this license to continue operations legally.

???? Who Needs the PA License?

You need a Payment Aggregator License if your company:

  • Provides payment gateway services

  • Collects and settles payments on behalf of merchants

  • Offers e-commerce checkout solutions with integrated payment options

  • Operates a digital platform facilitating multiple payment modes

✅ Note: Pure software providers or technical service platforms (that do not handle funds) do not require a PA license.

???? Eligibility Criteria for PA License in India

To apply for the license, a company must:

  • Be registered in India under the Companies Act, 2013

  • Have a minimum net worth of ₹15 crore at the time of application (to be increased to ₹25 crore within 3 years)

  • Have a strong data security and risk management framework

  • Ensure compliance with KYC, AML, and PCI-DSS standards

  • Maintain escrow accounts with scheduled commercial banks

  • Undergo system audits and periodic compliance reporting

????️ How Corpzo Helps You Get the PA License

Getting a PA License can be complex due to stringent RBI documentation and ongoing compliance requirements. Corpzo offers end-to-end assistance with:

  • Business eligibility assessment

  • Company registration and structure review

  • Preparation of RBI-compliant documents

  • Filing of application on RBI COSMOS portal

  • Guidance on IT infrastructure, security standards, and audit support

  • Post-license regulatory compliance and reporting

Our team has helped numerous fintech startups and platforms transition from unregulated operations to fully licensed payment intermediaries.

???? Why It Matters

Operating without a PA license after RBI’s mandate may lead to legal penalties or forced shutdowns. The license builds trust with customers, merchants, and banks, and enables partnerships with leading financial institutions.

If you’re a startup, e-commerce platform, or fintech player, now is the time to get compliant and future-ready.

???? Contact Corpzo
For a free eligibility check or application support, visit: www.corpzo.com
Email:- reach@corpzo.com, | Phone: +91 9999 139 391,

Address:- G 10, Sector 63, Noida, India, 201301,

Report this page