Payment Aggregator Licence from the RBI for Online Payment Businesses
Get your payment aggregator authorisation application prepared for the RBI under the PSS Act framework.
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A payment aggregator licence is an authorisation from the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 that allows a company to collect payments from customers on behalf of merchants and settle them to those merchants. It is required by non-bank entities that run such a service. Payment gateways that only provide technology and do not handle merchant funds are treated differently, and are not authorised directly. Our team helps you check which category applies, arrange the net worth and governance, prepare the documents and submit the application on the RBI online portal. Approval is at the sole discretion of the RBI.
Who provides this service: our team of Company Secretaries and compliance specialists.
Who Needs Payment Aggregator Licence (RBI)?
- Fintech companies that collect customer payments and settle them to merchants
- Online marketplaces that handle collections on behalf of sellers
- Platforms that currently rely on a partner and now want their own authorisation
- Payment technology firms that need to understand where the RBI draws the line for their model
- Founders planning a payments business who want to test regulatory feasibility early
Key Benefits
- Clarity on whether your model is a payment aggregator or only a technology gateway before you apply.
- Review of company structure, ownership and net worth against the current RBI requirement.
- Guidance on the escrow arrangement and settlement flow that the framework expects.
- Help documenting technology, security and data storage controls, which the RBI examines closely.
- Complete application preparation, including board approvals, policies and director declarations.
- Support with RBI queries and with planning the compliance routine after authorisation.
How It Works
Model and category review
We study how money moves in your business. If you hold or settle merchant funds, you are likely a payment aggregator; if you only provide technology, different considerations apply. We explain what this means for your plan.
Entity and net worth readiness
The applicant must be a company with the net worth the RBI requires. We review your capital, shareholding and promoters, and help you plan how the net worth will be built and maintained.
Escrow and settlement design
We map the flow of customer funds through the nominated escrow arrangement with a bank, define settlement timelines and responsibilities, and document it clearly for the RBI and for your banking partner.
Policies, technology and security documentation
We prepare or review board-approved policies on merchant onboarding, KYC, grievance redress and risk, and organise evidence of technology, data storage and cyber security controls.
Application on the RBI portal
Our team assembles the director, financial and policy documents, completes the application on the RBI online portal and submits it, keeping records of every attachment and acknowledgement.
Clarifications and authorisation
We track the application and prepare responses to RBI queries. After authorisation, we help you set up reporting and audit routines so the conditions of the licence are met from day one.
Documents Required
- Certificate of incorporation, memorandum and articles of association
- Audited financial statements and evidence of net worth
- Shareholding pattern and details of promoters and significant shareholders
- Identity, background and fit-and-proper declarations of directors
- Business plan with projections and description of the payment flow
- Board-approved policies for merchant onboarding, KYC, risk and grievance handling
- Escrow arrangement details with the partner bank
- Technology, security and data storage details with relevant audit reports
- Board resolution authorising the application
Timeline and Fees
Indicative timeline: Indicative range: preparation takes a few weeks, while RBI processing can run for many months; the timeline depends on the RBI and on the quality of the application.
Professional fee: The fee depends on the status of your company, the amount of work needed on net worth planning, the complexity of the payment flow and technology documentation, and the number of policies to be drafted. Any audit or certification costs are separate. We scope after reviewing your model.
What Can Go Wrong if This Is Missed or Done Incorrectly
- Operating as a payment aggregator without the required authorisation can attract regulatory action.
- Failing to maintain the net worth the RBI requires can put the authorisation at risk.
- Using customer funds outside the permitted escrow framework is a serious compliance breach.
- Weak security and data storage controls often raise concerns during review and later inspections.
Frequently Asked Questions
What is a payment aggregator?
A payment aggregator is an entity that collects payments from customers on behalf of merchants and then settles the money to those merchants, usually through an escrow account. Examples include marketplaces that handle collections for sellers. Non-bank entities carrying on this activity need authorisation from the Reserve Bank of India.
What is the difference between a payment aggregator and a payment gateway?
A payment aggregator handles the funds in the transaction flow and settles them to merchants. A payment gateway is a technology provider that routes payment information and does not handle the money. The RBI authorises aggregators directly, while gateways are not directly authorised but must work within the rules applicable to the entities they support.
Who can apply for a payment aggregator licence?
Non-bank entities that wish to operate as payment aggregators must be companies incorporated in India and meet the net worth and governance conditions set by the RBI. Banks do not need separate authorisation for this activity. Foreign ownership and control are also assessed, so we review your shareholding at the start.
What net worth is required to become a payment aggregator?
The RBI prescribes minimum net worth levels that apply at the time of application and by later stages. These figures can be revised, so we do not state them here. We confirm the current requirement from RBI communications during our review and help you plan how the company will meet and sustain it.
Is an escrow account mandatory for payment aggregators?
Yes. The framework requires a payment aggregator to hold customer funds in an escrow arrangement with a scheduled commercial bank until they are settled, and it restricts the use of those funds. Your banking partner, settlement timelines and reconciliation process need to be documented clearly as part of the application.
How long does the RBI take to grant authorisation?
The RBI sets its own pace and the time depends on how complete the application is and how many clarifications are needed. Technology and security documentation, net worth evidence and promoter details are common areas for questions. We cannot give a date or promise approval, but careful preparation reduces avoidable back-and-forth.
Official Sources
Rules, forms and fees change. Check the current position on the official portal:
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Last reviewed: . Laws, fees and procedures change; check the official portal before you act.
Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.