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RBI Payment Gateway License

Mobile payment generally refers to payment services operated under financial regulation and performed from or via a mobile. Mobile payment wallet also referred to as mobile money, mobile money transfer and mobile wallet.Payment wallet license or prepaid payment wallet license in India is issued by RBI. RBI is responsible for issuing guidelines and rule for prepaid payment wallet and responsible for granting the license.

RBI has classified prepaid payment wallet into three categories:

 

  • Closed system payment
  • Semi-closed system payment
  • Open system payment

Type of Payments Wallets in India

Closed system payment:

Closed wallet is the wallet which is issued by a company to a consumer for buying goods and services exclusively from that company. Example: Amazon, Cleartrip, etc. Such instruments do not allow cash withdrawal or redemption,

Restrictions of Close System Payment Wallet:

  • The close wallet does not permit cash withdrawal or redemption.
  • In case money is stored in the close wallet, it can only be used to purchase from the particular Site.


Open system payment

This is a type of wallet which can be used to purchase goods and services and also permit cash withdrawal at ATM. Example- Visa card, Master Card, Rupay card.

You can use the Open system payment wallet:

  • For cash withdrawal at ATM
  • Payment on purchase of goods and services on swiping
  • Use through POs machine for making payment.

 

Semi-Closed system payment:

It is a wallet that can be used to buy goods and services as it is a payment instrument that is redeemable of clearly identified merchant that contract specifically with the issuer to accept the payment instrument. Example- Paytm, Mobikwik, Freechare, etc.

You can use a Semi-Closed system payment wallet:

  • Pay to the affiliated merchant for purchasing goods
  • Purchase from wallet issuer
  • Transfer money

 

Brief Procedure for Incorporation of Prepaid Wallet Business

STEP-1: Setup a  Company under  Company act, 2013 by applying to Registrar of Company.
STEP-2: Filling of Application for approval in Form A as given under Regulation 3(2) of the Payment and Settlement System Regulations, 2008. With fee to Reserve Bank of India for grant of License.

  • Composition of the applicant.
  • Proof of position of registered office.
  • Certificate of Incorporation (COI).
  • A detailed report of principle business of the company.
  • Management detailed information.
  • Statutory auditor of the Company.
  • Recent audited balance sheet.
  • Name and address of bankers of Company.
  • Details of payment system with process flow, technology to be used, security features, inter-operability, etc.
  • Expected benefits to Indian the financial systems.
  • Amount of own capital proposed.
  • Sources of funds.
  • Any other information as may be required by RBI.

STEP-3:  Screening process shall be initiated by RBI to ensure prima facie eligibility of the applicants
STEP-4:  Subject to fulfilling the eligibility criteria and other circumstances, the Reserve Bank of India issues an ‘in-principle’ approval. The validity of in-principle approval issued by RBI shall be six months from the date of granting such in-principle approval.
STEP-5: Company shall submit a satisfactory System Audit Report to RBI within these six months, in case of failing which the in-principle approval shall lapse automatically. The entity can take one-time extension of six months by making an appeal in writing in advance with valid reasons. 
STEP-6: After consideration of all the particulars furnished by entities granted final approval shall commence business within six months from the grant of Certificate of Authorization 

Eligibility Criteria For Payment Gateway Wallet License:

Eligibility Criteria

Banks and Non-Bank Finance Companies(NBFC), who comply with the eligibility criteria, would be permitted issue all categories of payment instruments.

 

  • Only banks which have been permitted to provide Mobile Banking Transactions by the Reserve Bank of India shall be permitted to launch mobile based prepaid payment instruments (mobile wallets & mobile accounts).

  • Other entities would be permitted to issue only closed system prepaid payment instruments and semi-closed system prepaid payment instruments.

  • Mobile Prepaid value: Mobile Service Providers are permitted to issue mobile prepaid value. In addition to talk-value, the use of such prepaid value as a payment instrument shall be restricted to the purchase of only such value added digital contents/services which are for use on mobile phones. The use of mobile prepaid value for the purchase of other goods and services shall not be permitted.

 

Capital Requirements

  • Only banks and Non-Bank Finance Companies complying with the Capital Adequacy requirement prescribed by Reserve Bank of India from time-to-time shall be permitted to issue prepaid payment instruments.
  • A company incorporated in India and registered under the Companies Act 1956 / Companies Act 2013, with the principal objective of the financial business.
  • Any financial entities looking for payment wallet authorization from RBI must have a minimum positive net-worth of ? 5 cr.
  • Foreign Exchange Prepaid Payment Instruments:  Entities authorized under FEMA to issue foreign exchange prepaid payment instruments are exempt from the purview of these guidelines. The use of such payment instruments shall be limited to permissible current account transactions and subject to the prescribed limits under the Foreign Exchange Management (Current Account Transactions) Rules, 2000, as amended from time to time.

Semi-Closed PPIs Authorization Process

  • Any company with the principle objective of finance trade eager of setting up payment wallet systems will apply for RBI Form A as suggested under Regulation 3(2) of the Payment and Settlement Systems Regulations, 2008 along with a minimal fee of INR 10000/-.
  • RBI will review the application as per the guidelines of the Payment and Settlement Systems Regulations,  2008, also check the background of the management by obtaining inputs from other regulators, government departments, etc. If Applications is not as per prescribed in the guideline’s, It shall be returned without refund of the application fees.
  • The certificate will be valid for 5 years. After five years apply in writing to DPSS, RBI, Central Office, and Mumbai office should be initiated at least three months before the expiry of the validity of Certificate of Authorization,

faq FAQ`s

At Corpseed, we are committed to offer our services to the entrepreneurs and businesses as a very cost-effective proposition. We believe that a customer is always right and the focus of any business activity should be to serve the customer with utmost loyalty. All our services come with SLAs (Service Level Agreements) for on-time service delivery and money back guarantee to ensure high level of customer satisfaction.

At Corpseed, our valued customers are always kept in the loop as far as service delivery timeline is concerned and we inform our customers every time a milestone is achieved during each stage of service request processing. But we also believe that we may come across a customer who is not satisfied with our efforts. For that we have a very responsive Customer Care Department which work 24x7 to attend to and solve customer complaints. We also have a money back guarantee for those, who want their service charges to be refunded.

At Corpseed, We believe it is our responsibility to protect our customer information from unauthorized access. We have put systems and processes in place to make sure that the customer information is safe with us during its storage and transfer between in house and third party servers. We continuously test our systems and processes for security breach and vulnerabilities are identified and fixed at a regular basis.

If a customer is not satisfied with the service we provided and if he contacts our customer care helpline and files a formal complaint within 15 days of service delivery date, Corpseed would refund the entire or partial amount of Professional Fee charged for that particular service.

If a customer is having issues with our service delivery process, he has various alternatives available at his disposal to register his grievance with us. He can either email his complaint at complaints@corpseed.com or he can call our 24x7 Customer Care Helpline. Also, any customer is always welcome to visit our office to lodge a complaint with the senior management.

A customer can buy our services directly from our online platform, for which he need to make online payment. Once he clicks on "Apply Now", a new window will open, a customer is required to submit the information in the respective fields and click "Make Payment". A unique ticket number will be auto generated, the customer need to quote this number as reference for any enquiry regarding his service request.

All the monetary transactions performed on Corpseed online platform are secured with SSL System Protocol. We encrypt the customer information such as credit card and bank account details, before these are transmitted anywhere. We adhere to PCI DSS for data security standards for payment processing.

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