Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the certificate of authorisation, including banking and payment rails.
Get a payment license in India.
The Reserve Bank of India authorises payment system operators under the Payment and Settlement Systems Act, 2007, one certificate per system. A non-bank prepaid payment instrument issuer needs a net worth of INR 5 crore at application and INR 15 crore by the end of the third financial year; a payment aggregator needs INR 15 crore and INR 25 crore under the Master Direction of 15 September 2025, which split the licence into PA-Online, PA-Physical and PA-Cross Border. Customer money sits in escrow at a scheduled commercial bank, a full-KYC instrument holds up to INR 2,00,000 and no issuer pays interest on a balance. The certificate is perpetual and the application fee is INR 10,000.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
India in brief
One act, two Master Directions, and a certificate that never expires.
Authorisation in India comes from the Reserve Bank under the Payment and Settlement Systems Act, 2007, and it is granted system by system: a certificate of authorisation names the payment system you may operate. Two routes matter for most founders. A non-bank issuer of prepaid payment instruments works under the Master Directions of 27 August 2021, updated on 27 December 2024, and needs a minimum positive net worth of INR 5 crore at application, rising to INR 15 crore held at all times from the end of the third financial year. A payment aggregator works under the Master Direction of 15 September 2025, which repealed the 2020, 2021 and 2023 circulars and split the licence into PA-Online, PA-Physical and PA-Cross Border; net worth is INR 15 crore at application and INR 25 crore by the end of the third financial year. A payment gateway that supplies technology and never touches funds needs no authorisation, and a bank needs none to run aggregation.
Customer money sits in an escrow account with a scheduled commercial bank, and its balance may not fall below the value of outstanding instruments and merchant dues at the close of any day; a cross-border aggregator uses an AD-I bank and keeps inward and outward collections apart, with no netting between them. Balance rules are printed. A small prepaid instrument takes loads of INR 10,000 a month and INR 1,20,000 a financial year; a full-KYC instrument holds up to INR 2,00,000 at any point; no issuer pays interest on a balance. On timing, section 7 of the Act says the Reserve Bank will endeavour to dispose of applications within six months, and the Citizens' Charter updated on 3 September 2026 promises 90 days to in-principle approval and 30 days to the certificate once the system audit report lands. The certificate itself is perpetual, and the application fee is INR 10,000 excluding GST. Add UPI, run by NPCI, and the licence buys a place on the deepest retail rail in Asia. Tax is 25% or 30% with surcharge and a 4% cess, GST is 18% on financial services, and dividends to non-residents carry 20% withholding. Plan on nine to twelve months.
The Reserve Bank authorises payment system operators under the PSS Act, 2007, one certificate per system. A non-bank prepaid instrument issuer needs INR 5 crore of net worth at application and INR 15 crore from the third year. A payment aggregator needs INR 15 crore and INR 25 crore under the Master Direction of 15 September 2025.
Escrow at a scheduled commercial bank, full-KYC wallets to INR 2,00,000, no interest on balances. Ninety days to in-principle approval, thirty to the certificate after the system audit. Perpetual certificate, INR 10,000 fee, UPI on the other side. Tax 25% or 30%, GST 18%.
The routes
Prepaid payment instrument issuer, or payment aggregator.
Both are certificates of authorisation from the same regulator under the same act, but the net worth, the rulebook and the escrow rules differ. We fix the route first, then build once.
Prepaid payment instrument issuer, or payment aggregator in three sub-types.
01 - PREPAID PAYMENT INSTRUMENT ISSUER
Non-bank PPI issuer
Authorisation to issue prepaid payment instruments under the Master Directions of 27 August 2021, updated on 27 December 2024 - small, full-KYC, gift and mass-transit instruments, on escrow at a scheduled commercial bank and with no interest paid on balances.
Authorisation to issue prepaid payment instruments under the Master Directions of 27 August 2021, updated on 27 December 2024 - small, full-KYC, gift and mass-transit instruments, on escrow at a scheduled commercial bank and with no interest paid on balances.
- ✓Small, full-KYC, gift and PPI-MTS instruments
- ✓Net worth INR 5 crore at application
- ✓INR 15 crore from the end of the third financial year
- ✓Escrow account with a scheduled commercial bank
- ✓Full-KYC balance capped at INR 2,00,000
- ✓No interest on balances (Master Direction 7.4)
02 - PAYMENT AGGREGATOR
PA - INR 15 crore at applicationPayment aggregator: PA-O, PA-P, PA-CB
Authorisation under the Master Direction of 15 September 2025, which repealed the 2020, 2021 and 2023 circulars and split aggregation into online, physical and cross-border sub-types, each on its own escrow and merchant-onboarding rules.
Payment aggregator: PA-O, PA-P and PA-CB; INR 15 crore at application, INR 25 crore by the third year; escrow at a scheduled commercial bank.
- ✓PA-Online, PA-Physical and PA-Cross Border sub-types
- ✓Net worth INR 15 crore at application
- ✓INR 25 crore by the end of the third financial year
- ✓Escrow with a scheduled commercial bank, AD-I for PA-CB
- ✓PA-CB: separate inward and outward accounts, no netting
- ✓Payment gateways handling no funds need no authorisation
Costs and timelines are confirmed for your case before any work begins. The application fee is INR 10,000 excluding GST; net worth, the escrow set-up, the system audit and substance are itemised in your quote.
Why India
A perpetual certificate, published service standards, and UPI on the other side of it.
India runs the largest real-time retail payment system in the world and licenses into it through a regulator that publishes both its rulebook and the days it expects to take. Six reasons this file is worth building.
✓
UPI
The instant rail operated by NPCI is the reason most founders look at India at all; authorisation is the door to building on it rather than reselling someone else's access.The rail on the other side.
✓
A perpetual certificate
The certificate of authorisation is granted on a perpetual basis, so there is no renewal cycle and no expiry date to plan a funding round around.No renewal cycle.
✓
Net worth, not paid-up capital
The test is minimum positive net worth on the audited balance sheet - INR 5 crore to 15 crore for a PPI issuer, INR 15 crore to 25 crore for an aggregator - which lets retained value count.Retained value counts.
✓
A rulebook rewritten in 2025
The Master Direction of 15 September 2025 replaced three separate circulars with one text and named the PA-O, PA-P and PA-CB sub-types, so the aggregator perimeter is finally in a single document.Three circulars replaced.
✓
Published service standards
The Citizens' Charter sets 90 days to in-principle authorisation and 30 days to the certificate after the system audit report, each from a complete application.90 days, then 30 after audit.
✓
Two sandboxes
The Regulatory Sandbox and the Inter-operable Sandbox both run under the regulator, which gives a new product a supervised route before it needs a full certificate.Regulatory and inter-operable.
How it compares
How India differs from the alternatives founders shortlist.
India asks for more capital than Pakistan and less than most Gulf regimes, and it is the only one of the four with a perpetual certificate and a national instant rail carrying retail volume at this scale. The honest comparison is below.
India vs other jurisdictions
| Feature |  India | Other jurisdictions |
|---|---|---|
| Capital test | Net worth INR 5cr to 25cr by licence | Paid-up capital floors |
| Certificate | Perpetual once granted | Fixed terms or annual renewal |
| Wallet cap | INR 2,00,000 full KYC | Higher or absent |
| Instant rail | UPI, on the authorisation | Card-first or bank-owned |
Capital test
IndiaNet worth INR 5cr to 25cr by licence
Other jurisdictionsPaid-up capital floors
Certificate
IndiaPerpetual once granted
Other jurisdictionsFixed terms or annual renewal
Wallet cap
IndiaINR 2,00,000 full KYC
Other jurisdictionsHigher or absent
Instant rail
IndiaUPI, on the authorisation
Other jurisdictionsCard-first or bank-owned
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| India | PPI issuer / payment aggregator (RBI) | 25% or 30% · GST 18% | INR 5cr to 25cr net worth · escrow |
 Pakistan | EMI (SBP) | Dividends 15% filers | PKR 200M startup · 60-day in-principle |
 Singapore | SPI / MPI (MAS) | 17% · reliefs | SPI ceilings S$3M a month · MPI above |
 UAE | RPS Cat I-IV (CBUAE) | 9% · 0% band | AED 0.1-3M by volume |
IndiaLicense typePPI issuer / payment aggregator (RBI)
Taxation25% or 30% · GST 18%
RequirementsINR 5cr to 25cr net worth · escrow
PakistanLicense typeEMI (SBP)
TaxationDividends 15% filers
RequirementsPKR 200M startup · 60-day in-principle
SingaporeLicense typeSPI / MPI (MAS)
Taxation17% · reliefs
RequirementsSPI ceilings S$3M a month · MPI above
UAELicense typeRPS Cat I-IV (CBUAE)
Taxation9% · 0% band
RequirementsAED 0.1-3M by volume
Before you apply
Requirements for the RBI authorisation.Requirements for the authorisation.
The act sets the authorisation power, the PSS Regulations set the form, and the two Master Directions set the substance. The checklist below is what a passing file contains.
01
A company incorporated in India and registered under the Companies Act, 2013, which the prepaid instrument directions also read as covering companies registered under the 1956 Act.
02
Minimum positive net worth of INR 5 crore for a non-bank prepaid payment instrument issuer at application, rising to INR 15 crore held at all times from the end of the third financial year.
03
Net worth of INR 15 crore for a payment aggregator at application and INR 25 crore by the end of the third financial year, maintained on an ongoing basis and evidenced by the audited balance sheet.
04
Where foreign investment sits in the cap table, the capital requirements of the Consolidated FDI Policy and FEMA on top of the Reserve Bank's own figures.
05
An escrow account with a scheduled commercial bank whose balance never falls below the value of outstanding instruments and amounts due to merchants at the close of a day, with an AD-I bank and separate inward and outward collection accounts for a cross-border aggregator.
06
Promoters and directors who meet the fit-and-proper test of financial integrity, good reputation and character, and honesty.
07
Board-approved policies on know-your-customer, anti-money-laundering, merchant onboarding, grievance handling and outsourcing, with KYC built to the Reserve Bank's Master Direction of 2016.
08
The information-technology baseline in Annexure 1 of the payment aggregator direction, including PCI-DSS scope and an annual cyber-security audit by an auditor empanelled with CERT-In.
09
Form A filed under Regulation 3(2) of the PSS Regulations through the PRAVAAH portal, with the application fee of INR 10,000 excluding GST.
10
A system audit report after in-principle approval, against which the certificate is issued; in-principle approval is valid six months and may be extended once.
01
Company incorporated in India.
02
PPI net worth INR 5 crore, then 15 crore.
03
PA net worth INR 15 crore, then 25 crore.
04
FDI and FEMA capital rules where foreign-owned.
05
Escrow at a scheduled commercial bank.
06
Fit-and-proper promoters and directors.
07
Board policies: KYC, AML, merchants, outsourcing.
08
IT annexure, PCI-DSS, CERT-In cyber audit.
09
Form A via PRAVAAH, INR 10,000 fee.
10
System audit report before the certificate.
Reflects the PSS Act 2007, the PSS Regulations 2008, the Master Directions on Prepaid Payment Instruments as updated on 27 December 2024 and the Master Direction on Regulation of Payment Aggregators of 15 September 2025, as of 2026.PSS Act 2007; PSS Regulations 2008; PPI Master Directions (updated 27 December 2024); PA Master Direction (15 September 2025).
How it works
From first call to the certificate of authorisation.
01
Route and net worth
PPI issuer or payment aggregator, and which aggregator sub-type; the net-worth path from INR 5 or 15 crore to INR 15 or 25 crore mapped against the funding plan.PPI or PA, and which sub-type.
02
Company and capital
Indian company incorporated, the FDI and FEMA position settled, net worth certified by a chartered accountant.Incorporated; net worth certified.
03
Form A through PRAVAAH
Application, board-approved policies, the IT annexure and the INR 10,000 fee filed, with the query rounds answered as they arrive.Policies, IT annexure, fee filed.
04
In-principle approval
Ninety days under the Citizens' Charter from a complete application, then the system audit prepared and the report filed.90 days, then the system audit.
05
Certificate and launch
The certificate issued within thirty days of the audit report and perpetual once granted, then NPCI onboarding and the escrow live.30 days after the audit report.
Quick facts
RegulatorReserve Bank of India
LawPSS Act 2007 · Master Directions
LicencePPI issuer · PA-O / PA-P / PA-CB
Net worthINR 5cr to 15cr · PA 15cr to 25cr
Client fundsEscrow, scheduled commercial bank
FeeINR 10,000 excluding GST
Decision90 days · 30 days after audit
Corporate tax25% or 30% · GST 18%
The service standards run from a complete application, and the system audit report is the item that most often slips. Booking the CERT-In empanelled auditor at the same time as filing is what keeps the thirty-day step to thirty days.
Your India desk
Run from our Asia-Pacific desk.
Prifinance - Asia-Pacific desk
Dubai · coordinating Indian mandates
33 Level, Al Saqr Business Tower, Dubai
01
Indian company formation
A private limited company under the Companies Act, 2013, with the FDI and FEMA position settled before the first share is issued.Private limited; FDI and FEMA settled.
02
The RBI file
Form A through PRAVAAH under Regulation 3(2), the net-worth certificate, board-approved policies and the IT annexure - drafted by us and defended through the query rounds.Form A, policies, IT annexure.
03
Escrow and rails
The escrow account at a scheduled commercial bank, an AD-I bank where the licence is cross-border, and NPCI onboarding for UPI planned with the certificate.Scheduled bank; NPCI onboarding.
04
Substance in India
Fit-and-proper directors, a KYC and AML function built to the 2016 Master Direction, PCI-DSS scope defined and the CERT-In empanelled auditor booked.Directors, KYC function, cyber audit.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in India.
A 25% or 30% corporate rate depending on turnover, surcharge and a 4% cess on top, 18% GST on financial services, and 20% withholding on dividends leaving the country.
Corporate tax 25% or 30%
Twenty-five per cent where total turnover or gross receipts for 2023-24 did not exceed INR 400 crore, and 30% in all other cases. Companies other than domestic companies are taxed at 35%.By 2023-24 turnover; foreign 35%.
Surcharge and cess
Seven per cent above INR 1 crore of income and 12% above INR 10 crore for a domestic company, 2% and 5% for a foreign one, with a Health and Education Cess of 4% on tax and surcharge.7% or 12%, plus 4% cess.
GST 18%
Financial and related services fall in the 18% slab under Notification 11/2017-Central Tax (Rate). Which of a payment company's fees land inside it is mapped before pricing is set.On financial and related services.
Dividends 20%
Withholding under section 195 on dividends paid to non-residents is 20%, or 10% where the dividend comes from a unit in an International Financial Services Centre. Residents are withheld at 10% under section 194.To non-residents; 10% from IFSC.
Concessional regimes
Sections 200 and 201 of the Income-tax Act, 2025 carry the reduced-rate options that replaced sections 115BAA and 115BAB; whether a payment company qualifies is tested before incorporation.Sections 200 and 201 tested early.
Payroll
Income tax and contributions on Bengaluru or Mumbai salaries, priced with the compliance function and the annual cyber-security audit the direction requires.Income tax + contributions.
Tax summary
Corporate tax25% or 30% domestic
Foreign companies35%
Surcharge and cess7% or 12% · cess 4%
GST18% on financial services
Dividend withholding20% to non-residents
PayrollIncome tax + contributions
*Figures as of 2026 per the Finance Bill 2026 memorandum, the Income Tax Department TDS rates page and Notification 11/2017-Central Tax (Rate). Treaty positions are assessed per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Indian private limited company, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, authorised operator.
Follow Prifinance
Active across our channels.
India · RBI
Launch your payment project in India with expert support.
Full-service assistance - from company incorporation to the RBI certificate of authorisation, escrow, NPCI onboarding and ongoing compliance.
Get a consultation →Free legal opinion
Is India the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Indian payment authorisation, answered.
What authorisation does a payment business need in India?+
A certificate of authorisation from the Reserve Bank of India under the Payment and Settlement Systems Act, 2007, granted for the specific payment system you operate. The two routes most founders take are non-bank issuer of prepaid payment instruments and payment aggregator, the latter split into PA-Online, PA-Physical and PA-Cross Border.
How much net worth is required?+
A non-bank prepaid instrument issuer needs a minimum positive net worth of INR 5 crore at application and INR 15 crore held at all times from the end of the third financial year. A payment aggregator needs INR 15 crore at application and INR 25 crore by the end of the third financial year.
How long does the Reserve Bank take?+
Section 7 of the act says the regulator will endeavour to dispose of applications within six months of receipt. The Citizens' Charter is more specific: 90 days to in-principle authorisation and 30 days to the certificate after the system audit report, each from a complete application. Plan on nine to twelve months end to end.
How is customer money held?+
In an escrow account with a scheduled commercial bank, whose balance may not fall below the value of outstanding instruments and amounts due to merchants at the close of a day. A cross-border aggregator uses an AD-I bank and keeps inward and outward collection accounts separate, with no co-mingling and no netting off.
What are the wallet limits?+
A small prepaid instrument takes loads of no more than INR 10,000 a month and INR 1,20,000 a financial year, with an outstanding cap of INR 10,000. A full-KYC instrument may hold up to INR 2,00,000 at any point. Gift instruments stop at INR 10,000 and mass-transit ones at INR 3,000.
Does the certificate expire?+
No. The certificate of authorisation is granted to payment system operators on a perpetual basis. In-principle approval, which comes first, is valid for six months and may be extended once.
What does it cost to apply?+
The application fee is INR 10,000 excluding applicable GST, filed on Form A under Regulation 3(2) of the PSS Regulations through the PRAVAAH portal. The larger costs are the net worth itself, the escrow set-up and the system audit.
Does a payment gateway need authorisation?+
No. A payment gateway that provides technology without any involvement in handling funds is outside the authorisation requirement, and a bank needs no authorisation to carry on payment aggregation. The line is whether funds pass through you.
How are payment companies taxed?+
Corporate tax at 25% where 2023-24 turnover did not exceed INR 400 crore and 30% otherwise, with surcharge of 7% or 12% and a 4% cess. GST is 18% on financial services. Dividends to non-residents carry 20% withholding under section 195.
Why India rather than Singapore or the UAE?+
India gives you UPI, a domestic market at a scale nowhere else in the region matches, and a certificate that never expires. Singapore licenses faster into a regime built for cross-border business and carries the reputational stamp; the UAE asks less capital and taxes profit at 9%. Groups that need the Indian consumer license here and hold a Gulf or Singapore entity for everything else.
Which authorisation?+
RBI certificate: PPI issuer or payment aggregator.
Net worth?+
PPI 5cr then 15cr; PA 15cr then 25cr.
How long?+
90 days in-principle, 30 after audit.
Client funds?+
Escrow at a scheduled commercial bank.
Wallet limits?+
Small 10,000 a month; full KYC 2,00,000.
Does it expire?+
No - the certificate is perpetual.
Fee?+
INR 10,000 excluding GST.
Gateway licence?+
None needed if funds never pass through.
Taxes?+
25% or 30%, GST 18%, dividends 20%.
vs Singapore / UAE?+
UPI and market scale; less tax elsewhere.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
“Opening an account with Prifinance in a Swiss bank was such an easy and quick process that I was shocked. It all started with the first call, where I received detailed guidance on the required documents and the entire procedure.One of the key highlights was their attention to detail. As someone who usually gets tangled up in paperwork, I was pleasantly surprised when they sent me all the documents and…”
Google
“I recently had the pleasure of working with Boris.. and I must say, it was a fantastic experience. Boris went above and beyond to assist me with my residency needs. His professionalism, knowledge, and dedication truly stood out. I highly recommend working with Boris and the team!”
Google
Start today
One message away from your RBI authorisation.
Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Indian route fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Reserve Bank of India or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.