Payment Aggregator (PA) License in India is mandatory for entities that facilitate online payments by collecting funds from customers and settling them to merchants. The license is regulated by the Reserve Bank of India (RBI) to ensure secure, transparent, and compliant digital payment operations.
In this Saving Mantra guide, we explain what a Payment Aggregator is and provide a step-by-step process for obtaining a Payment Aggregator License in India, including eligibility, capital norms, documentation, and post-licensing compliance.
What is a Payment Aggregator?
A Payment Aggregator is an entity that enables merchants to accept payments from customers using multiple payment instruments such as:
- Credit cards and debit cards
- UPI
- Net banking
- Wallets
Payment Aggregators pool customer payments and transfer them to merchants after settlement, unlike Payment Gateways which only provide technical infrastructure.
Who Needs a Payment Aggregator License?
Entities that:
- Onboard merchants and handle customer funds
- Offer checkout and settlement services
- Provide integrated payment solutions to e-commerce platforms
must obtain a Payment Aggregator License from RBI.
Benefits of Payment Aggregator License
- Legal authority to operate payment aggregation business
- Enhanced trust among merchants and customers
- RBI-regulated credibility
- Access to banking and card networks
- Long-term scalability in digital payments ecosystem
Eligibility Criteria for Payment Aggregator License
As per RBI guidelines, an applicant must:
- Be incorporated as a Company under Companies Act, 2013
- Have minimum net worth of ₹15 crore at application stage
- Increase net worth to ₹25 crore within 3 years
- Have fit and proper promoters and directors
- Maintain robust IT, data security, and risk management systems
Step-by-Step Process for Payment Aggregator License in India
Step 1: Company Incorporation
Incorporate a Private Limited or Public Limited Company with payment services as its main object.
Step 2: Arrange Minimum Net Worth
Infuse the required net worth (₹15 crore) and obtain a CA-certified net worth certificate.
Step 3: Prepare RBI-Compliant Policies
Draft mandatory policies such as:
- Information security policy
- Risk management framework
- AML & KYC policy
- Merchant onboarding and dispute resolution policy
Step 4: Prepare Business Plan
Create a detailed 3–5 year business plan covering revenue model, technology architecture, settlement mechanism, and scalability.
Step 5: Submit Application to RBI
File the Payment Aggregator application with RBI along with all supporting documents and declarations.
Step 6: RBI Due Diligence & Clarifications
RBI scrutinizes promoter background, financial soundness, IT systems, and compliance readiness. Clarifications may be sought.
Step 7: In-Principle Approval
RBI grants in-principle approval, subject to fulfillment of specific conditions within a defined timeline.
Step 8: Operational Readiness
Set up escrow accounts, IT audits, merchant agreements, and internal controls as per RBI directions.
Step 9: Final Payment Aggregator License
After satisfactory compliance, RBI issues the final Payment Aggregator License, allowing commencement of operations.
Documents Required for Payment Aggregator License
- Certificate of Incorporation
- MOA & AOA
- Audited financial statements
- Net worth certificate
- Director and shareholder KYC
- Business plan and financial projections
- IT system architecture and audit reports
- Board resolutions and declarations
Timeline for Payment Aggregator License
- Typically 6 to 12 months, depending on RBI scrutiny and readiness level.
Post-License Compliance
- Maintenance of minimum net worth
- Escrow account management
- Periodic RBI reporting
- System audits and cybersecurity compliance
- Consumer grievance redressal mechanism
Penalty for Operating Without License
Operating as a Payment Aggregator without RBI authorization may result in:
- Heavy monetary penalties
- Suspension of operations
- Legal action under RBI Act and payment regulations
Why Choose Saving Mantra for Payment Aggregator License?
- RBI-focused fintech regulatory expertise
- End-to-end license application support
- Accurate documentation and policy drafting
- Liaison with RBI and compliance readiness
- Transparent and professional execution
Conclusion
Payment Aggregator License in India is a critical regulatory requirement for fintech and payment companies handling customer funds. By following the correct step-by-step Payment Aggregator licensing process, businesses can build a compliant, secure, and scalable payment platform. Saving Mantra ensures expert guidance at every stage of the Payment Aggregator License journey.
Disclaimer
The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or regulatory advice. RBI guidelines, net worth requirements, and licensing conditions may change from time to time. Readers are advised to consult qualified professionals before applying for a Payment Aggregator License in India.