Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Country
Are you struggling with the complex and time-consuming process of securing a TPAP license? Connect with Enterslice experts to simplify the licensing procedure so you can focus on growing your payment business without stress.
500000 +
500 +
50 +
REQUEST A CALL BACK
Rated at 4.8/5 22554+ Happy Reviews
Overview Roles Benefits Procedure Timeline Documentseligibility Faqs Schedule Meeting What is a TPAP License? If you are a fintech entrepreneur looking to tap into India’s digital payments ecosystem, obtaining a Third-Party Application Provider, i.e., a TPAP license, is one of the best steps. A TPAP license, granted by the NPCI, authorizes companies to provide UPI-enabled payment services to customers through a mobile application. Unlike banks, it facilitates integration of third-party entities with UPI platforms for fund transfer, bill payment, and processing necessary financial transactions. In India, the grant of a TPAP license serves as a virtual gateway for the effective working of third-party companies within the UPI ecosystem. Worried about the complex process of obtaining a UPI TPAP license? Connect our experts, ensuring seamless integration with the NPCI registration process in India. Facilitates seamless UPI transactions for users Enable businesses to integrate UPI payments easily Drive innovation in digital payment applications Expand financial inclusion across India Over 40 TPAPs are active in India Examples include PhonePe, Paytm, etc Power Your Fintech Growth with a TPAP License in India Enable seamless UPI transactions and become a trusted player in India’s $4 trillion digital economy. Get your TPAP License with our experts at Enterslice effortlessly. Get Started Now Roles and Responsibilities of TPAP in the UPI Ecosystem The roles and responsibilities of TPAP, ensuring smooth functioning of the UPI ecosystem, are discussed below: Acts as a Service Provider TPAPs such as Google Pay, PhonePe, Amazon Pay, etc. act as a service provider to the Payment Service Provider (PSP) and participate in the UPI network through PSP banks. Compliance with NPCI and PSP Requirements TPAPs ensure strict compliance with all the requirements as prescribed by the PSP banks and NPCIs in relation to the TPAP's participation in UPI. Secure Functioning on UPI Platform TPAPs are responsible for ensuring their systems are robust, secure, and capable of handling adequate UPI transactions without disruptions. Compliance with Applicable Laws TPAPs ensure compliance with all the applicable laws, rules, regulations, and guidelines issued by statutory or regulatory authorities governing the UPI transactions in India. Stores Payment Related Data All UPI-related transactions and data collected by TPAP must be stored exclusively within India, ensuring compliance with RBI’s data localisation norms. Customer Grievance Redressal TPAPs provide end-user customers with an option to raise a grievance through the TPAP’s grievance redressal facility, either through the UPI app or website. Access to the Data of Agencies TPAPs provide direct access to the data, systems, and information to the RBI, NPCI, or any agency nominated by them, for carrying out audits and compliance checks, whenever required. Benefits of Securing Online TPAP Registration The benefits of securing online TPAP registration, which primarily signifies compliance with the NPCI rules and regulations, are discussed below: Legitimacy and Trust The grant of online TPAP registration enhances the credibility and trustworthiness of the service providers. Moreover, it assures compliance of users, banks, and merchants with UPI regulations, forecasting trust and legitimacy in their services. Access to UPI Platforms Securing online TPAP registration allows access to a wide range of services available through the UPI platforms. Moreover, it enables the end-users to enhance their overall payment experience through UPI platforms. Seamless Integration / Bridges Gap Securing an online TPAP registration bridges the gap between partner banks and other UPI participants. Moreover, it ensures seamless integration of sponsor banks and other UPI participants, facilitating secure and efficient UPI transactions in India. Dispute Resolution Securing an online TPAP registration allows businesses to leverage NPCI’s robust dispute management framework for the timely resolution of conflicts or issues that may arise during UPI transactions. Regulatory Compliance Securing an online TPAP registration enables the third-party application providers to comply with applicable laws, regulations, and guidelines. Moreover, it ensures their commitment to regulatory compliance and secure efficient operation within the UPI ecosystem. Business Growth Securing an online TPAP registration future-proofs your business for sustained growth and innovation within the dynamic UPI landscape. Moreover, it enables businesses to adapt to updates and new opportunities in the digital payment ecosystem. Enhance Transaction Experience The grant of a TPAP license enhances the transaction experience within the UPI ecosystem. It enables the service providers to offer value-added services like bill payments, mobile recharge, and other convenient services, enhancing the customer experience. Offers a User-Friendly Interface TPAP service providers offer user-friendly interfaces for making seamless UPI transactions and possess features like transaction history, contact management, and seamless UPI transactions. How to Become a TPAP License Holder in India? The process to become a TPAP license holder in India requires compliance with the procedure as provided below: Check Eligibility Criteria The first step requires the entrepreneurs to ensure compliance with the eligibility criteria and other business needs as prescribed by the NPCI for TPAP applicants. File Online Application to NPCI The next step requires the applicant to submit an online application to the National Payments Corporation of India (NPCI) for obtaining the TPAP license registration. Submission of Necessary Documents Next, the applicant must provide all necessary documents, including business registration papers, compliance certifications, and technical details of your platform. Application Review Once all the documents are submitted, the NPCI reviews your application and supporting documents to assess your suitability. Verification and Assessment Upon successful review of the application, a detailed evaluation of your business model, technical infrastructure, and security systems is carried out to ensure compliance with UPI standards. Issuance of TPAP License Once approved, the NPCI issues the TPAP license, officially authorizing businesses to provide UPI-enabled services in India. Compliance with Ongoing Obligations Lastly, the TPAPs must continuously follow NPCI, RBI, and data protection guidelines, along with periodic audits and reporting requirements. How Long Does it take to Apply for a TPAP Registration? The timeframe to apply for a TPAP registration in India typically takes around 2 to 3 months, varying based on the completeness of documentation, technical readiness, and compliance with NPCI guidelines. Initial Planning: 2 to 4 Weeks The initial stage, which involves business planning, choosing the right legal entity, and preparing a framework for applying for a TPAP license, takes around 2 to 4 weeks. Documentation Preparation: 2 to 3 Weeks It typically takes around 2 to 3 weeks for the preparation of necessary documents, including the incorporation certificate, board resolutions, and the compliance process. Application Submission: 1 Week It takes approximately 1 week to make a submission of the formal application to the National Payments Corporation of India (NPCI), along with the required forms and documents. NPCI Review & Assessment: 2 to 4 Weeks The timeline for conducting a thorough NPCI review and assessment, which includes due diligence, infrastructure inspection, and compliance checks, takes around 2 to 4 weeks. Verification and Testing: 4 to 8 Weeks The NPCI takes around 4 to 8 weeks to perform background verification, audits of technical & security infrastructure, and risk assessment. Issuance of TPAP License: 2 to 4 Weeks After successful verification, the NPCI grants the TPAP license, authorizing the entity to provide UPI-enabled payment services within 2 to 4 weeks. Post-License Compliance & Integration: 2 to 3 Weeks Upon the issuance of the license, it takes around 2 to 3 weeks to ensure compliance with the additional compliance steps, such as technical integration with UPI, security audits, and setting up the grievance redressal system. What Documents are Needed for Obtaining a TPAP License? The documents needed for obtaining a TPAP license are as discussed below: Company’s certificate of incorporation Memorandum & Articles of Association Incorporation documents of the company Company’s financial statements (either audited or self-certified) KYC documents of directors and shareholders Detailed business plan and business model Comprehensive security and privacy policies Bank proposal, bank shares, UAT details Technical architecture documents Formal declaration of compliance Proof of net worth requirement for payment aggregators PCI DSS compliance certificate for payment aggregators Disaster recovery and business continuity plans Additional documents (if required by NPCI) Future of TPAPs in India The future of Third-party Application Providers (TPAPs) in India looks extremely promising, with UPI continuing to serve as the backbone of the digital payment ecosystem. TPAPs are set to play a crucial role in expanding financial inclusion, driving innovation, and shaping India’s journey towards a cashless economy. With the combined support of the Government of India, the RBI, and the NPCI, TPAPs are expected to witness faster adoption, stricter regulatory oversight, and cutting-edge technological upgrades, making them even more significant in the payment landscape. However, the future of TPAP can be seen evolving across the following UPI branches, as provided below: UPI for Credit UPI Lite International UPI Expansion Merchant Ecosystem Expansion Schedule Meeting Regulatory Framework for TPAPs in India In India, the digital payment ecosystem has witnessed exponential growth, with the UPI becoming the backbone of real-time financial transactions. To ensure its smooth functioning, the licensing, operations, and compliance of third-party application providers are governed by a comprehensive regulatory framework designed to provide security, stability, and trust among users. The entities aspiring to function as a TPAP must ensure compliance with multiple regulations and guidelines issued by key authorities. Some of the regulatory frameworks are discussed below: NPCI Guidelines The NPCI (National Payments Corporations of India), acting as the developer and operator of the UPI platform, issues a comprehensive guideline governing the eligibility, technical standards, and operational guidelines for TPAPs. RBI’s Master Directions RBI (Reserve Bank of India), as the apex regulator of payment systems in India, issues binding guidelines known as the Master Directions on Payment and Settlement Systems. These directions lay down the rules that TPAP follows for security, risk management, and financial stability within the UPI ecosystem. UPI Procedural Guideline In addition to the overarching RBI and NPCI norms, the UPI (i.e., Unified Payment Interface) functions under its own set of detailed procedural guidelines defining the technical, operational, and security standards for TPAPs. Data Protection Laws TPAPs must ensure compliance with India’s data protection and privacy laws, safeguarding sensitive user information. As per the RBI and NPCI guidelines, all UPI-related data must be stored and processed only within India. Challenges While Obtaining a TPAP License in India The common challenges faced while obtaining a TPAP license in India are as discussed below: Finding PSP Banks: A challenge faced while finding a willing PSP bank partner for sponsoring new TPAPs Meeting Security Standards: A challenge faced while meeting stringent security standards like encryption protocols, PCI DSS, and ISO certifications Handling High User Load: Most commonly faced while handling high user load simulation during NPCI testing. Dispute Redressal: Problem faced while building a 24/7 dispute redressal mechanism before going live. Updating Systems: A challenge faced while continuously updating systems as UPI specifications evolve. Penalties for Non-Compliance with TPAP Regulations The penalties for non-compliance with the TPAP regulations in India are as discussed below: Monetary fine is the common consequence of non-compliance Suspension of new customer onboarding Restricting the use of UPI APIs Suspension or termination of TPAP’s membership in the UPI network Fines and public sanctions to damage the company’s credibility and user trust Eligibility Criteria for Obtaining a TPAP License Registration The eligibility criteria for obtaining a TPAP license registration in India are as discussed below: Checklist for Applicants Seeking TPAP License Registration The applicants must be incorporated under the Companies Act, 2013 Entities must demonstrate robust, scalable, and secure IT infrastructure Applicants must showcase the ability to comply with UPI procedural guidelines Partner with at least one certified payment service provider (PSP) bank Must have prior experience in financial services, fintech operations, payment processing, or digital banking Who can apply for a TPAP License Registration? Fintech companies Registered private limited companies Banks and NBFCs using NPCI UPI technology Large corporations with a customer-facing business Payment aggregators/ PSPs expanding into app-based models Registered e-commerce and mobile wallet companies Startups with innovative UPI app concepts Sponsor/partner bank underlying operational and financial liability Post-TPAP Licensing Compliance in India The applicants must adhere to the following post-TPAP licensing compliance requirements as discussed below: Sign a sponsor agreement with banks, fintech companies, and regulators Ensure submission of periodic reports comprising transaction details, frauds, etc. Maintain stringent security measures for user data protection Ensure the protection of the privacy and critical data of the customers Conduct regular internal audits to identify and rectify operational deficiencies Stay updated and compliant with all UPI-related rules and guidelines issued by the NPCI Provide access to multiple channels for the resolution of UPI-related grievances Comply with the market share cap imposed by the NPCI Obtain explicit user consent for seeding and porting of UPI IDs Store all payment data, including UPI transaction data Undergo regular system audits, including cybersecurity audits Allow access to TPAP systems and data for audits and inspections by the RBI, NPCI, etc. Difference b/w TPAP License Holder and Payment Aggregator The key difference between a TPAP license holder and a payment aggregator is as discussed below: S. No. Basis of Comparison TPAP Payment Aggregator 1 Definition TPAPs are entities authorized by NPCI to provide UPI-enabled payment applications to customers. Payment aggregators are intermediaries that enable merchants to accept online payments from customers through multiple payment instruments. 2 Example Google Pay, PhonePe, Paytm, etc. Razorpay, PayU, Cashfree, etc. 3 Regulator National Payments Corporation of India (NPCI) Reserve Bank of India (RBI) 4 Payment Focus Unified Payments Interface (UPI) only Multiple payment modes, including UPI, cards, net banking, and wallets 5 Role in Transactions Acts as an interface and intermediary between the user and their PSP bank. Acts as a gateway between merchants and acquiring banks, handling the entire payment and settlement process. 6 Fund Handling Does not handle funds directly. It thereby relies on the PSP bank for transaction processing and settlement. Collects and holds customer funds in an escrow account before settling them with the merchant. 7 Licensing Requires a TPAP license from NPCI to operate within the UPI ecosystem. Non-bank PAs require a payment aggregator license from the RBI. Why Trust Enterslice for TPAP License Registration? As a leading consulting firm, Enterslice ensures compliance with the NPCI-prescribed rules, regulating the licensing and participation of TPAP within the UPI ecosystem. Have a look at the following reasons why Enterslice is the right partner for obtaining a TPAP license registration in India: In-depth knowledge of RBI and NPCI guidelines Ensures hassle-free documentation for obtaining a TPAP license Extending licensing support across 100+ cities Provides reliable cloud-based architecture Guarantees an effortless customer acquisition rate Allows access to diversified banking options in India Access to a strong network of 10,000+ CAs, CS, and lawyers Impressive 99.9% approval success rate Provides continuous and risk-free compliance assistance Post-licensing compliance guidance with audit preparedness & data compliance Provides a 30% quicker processing time than the industry norm Proactively identify regulatory risks and assist in NPCI/RBI audits Offers a dedicated relationship manager for personalized assistance FAQs on Online TPAP Registration What is a TPAP? TPAP, which stands for Third-Party Application Provider, is a non-banking company that provides a user-facing application, allowing users to conduct UPI-based transactions by partnering with licensed banks. Is Google Pay a PSP or TPAP? Google Pay is a TPAP (Third-Party Application Provider), not a PSP (Payment Service Provider), which provides the user-facing UPI-compliant app, facilitating transactions by partnering with one or more licensed PSP Banks handling actual payment with the NPCI. What is the use of TPAP? TPAP acts as a service provider that partners with a payment service provider bank to offer UPI services to users in India. Its primary use is to facilitate seamless and secure digital transactions for consumers through its mobile application or website. What are the eligibility criteria set by NPCI for TPAP licenses? The eligibility criteria set by the NPCI for TPAP licenses require the applicant to ensure compliance with the following: The applicants must be incorporated under the Companies Act, 20113 Entities must demonstrate a robust, scalable, and secure IT infrastructure Applicants must showcase the ability to comply with UPI procedural guidelines Partner with at least one certified payment service provider (PSP) bank Must have prior experience in financial services, fintech operations, payment processing, or digital banking Who gives the TPAP license? The National Payments Corporation of India (i.e., NPCI) is the entity authorized for the grant of TPAP license in India. Is WhatsApp Pay a TPAP in India? Yes, WhatsApp Pay is a TPAP, which requires authorization by the National Payments Corporation of India (NPCI). What is an example of a TPAP? Some of the well-known examples of TPAPs are Amazon Pay, Google Pay, PhonePe, Paytm, and WhatsApp Pay. How to become a TPAP license holder? The process to become a TPAP license holder requires compliance with the following steps: Step 1: Check Eligibility Criteria Step 2: File Online Application to NPCI Step 3: Submission of Necessary Documents Step 4: Application Review Step 5: Verification and Assessment Step 6: Issuance of TPAP License Step 7: Compliance with Ongoing Obligations What is the role of TPAP in UPI? The roles and responsibilities of a TPAP in UPI are: Develops user-friendly mobile applications and platforms that integrate with the UPI network Adheres to all rules, regulations, and guidelines set by the NPCI and other regulatory authorities Ensures the adequate security of its systems and stores all payment data within India Participates in the UPI ecosystem by leveraging a Payment Service Provider (PSP) Bank Provides access to its data, information, and systems for auditing purposes to regulatory bodies Contribute to the growth and innovation of the UPI ecosystem by collaborating with NPCI and PSPs Offer a grievance redressal facility through its app, website, or other channels for users to raise complaints or issues related to UPI transactions Who is eligible for a TPAP license? The entities eligible to apply for the TPAP license in India are: Fintech companies Registered private limited companies Banks and NBFCs using NPCI UPI technology Large corporations with a customer-facing business Payment aggregators/ PSPs expanding into app-based models Registered e-commerce and mobile wallet companies Startups with innovative UPI app concepts Sponsor/partner bank underlying operational and financial liability Related Services ESI Registration EPF Registration IEC Registration Business Valuation Consulting RERA Registration Trade License BIS Certification RCMC Registration NSIC Registration FSSAI License Renewal RNI Registration PSARA License Our Awards Top 100 Companies in Asia - Red Herring Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work. Top 25 in India - Consultants Review Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers. We partner with more than 100+ companies -- Testimonials Don't take our word for it “Using Enterslice for my NBFC registration was a good decision. They were transparent, and the process was completed without any issues. Communication was clear, and I felt confident throughout. Great service overall.” Aakash Rao Verified Customer “I needed help with registering my NBFC and found Enterslice online. They handled everything professionally, and the process was quicker than I expected. I’m satisfied with their service, and I’d recommend them to anyone looking for this service.” Pranav Joshi Verified Customer “Thanks to Enterslice, I got my FEMA registration done quickly and without stress. Their legal team is experienced, responsive, and very professional. They really understand foreign exchange laws in India” Rahul Menon Verified Customer “I reached out to Enterslice after struggling to understand FEMA registration on my own. Within a day, they had a plan ready. Super efficient, professional, and surprisingly friendly throughout the process. Would 100% recommend them!” Siddharth Rao Verified Customer “Enterslice took care of our NBFC takeover very smoothly. I didn’t have to run around for documents or approvals. Highly recommend if you are looking for takeover experts.” Vikram Joshi Verified Customer “I really appreciate how Enterslice handled the registration of my mortgage guarantee company. They took care of documents, compliance, and all the formalities. For me, the best part was their clear communication and regular updates.” Raghav Kapoor Verified Customer “We were struggling to manage gaps in our asset-liability structure, but Enterslice helped us sort it out. Their team was very professional and gave us clarity on how to stay compliant and risk-free” Nikhil Suresh Verified Customer “The team at Enterslice handled my alternative asset valuation with professionalism and precision. Their detailed reporting gave me the assurance I was seeking, and the timely delivery exceeded expectations.” Arvind Nair Verified Customer “I appreciated the professionalism and clarity Enterslice brought to the asset valuations process. Their valuation gave me the assurance I needed for future planning.” Rajat Malhotra Verified Customer “Enterslice delivered a strategic plan that balanced compliance and growth. Their expertise in NBFC capital adequacy was evident at every step, and their guidance gave us clarity in decision-making.” Rohit Khanna Verified Customer View More Subscribe to our Newsletter Stay updated with all the latest legal updates. Just enter your email address and subscribe for free! Subscribe In the news Get Started Live Chat
If you are a fintech entrepreneur looking to tap into India’s digital payments ecosystem, obtaining a Third-Party Application Provider, i.e., a TPAP license, is one of the best steps. A TPAP license, granted by the NPCI, authorizes companies to provide UPI-enabled payment services to customers through a mobile application. Unlike banks, it facilitates integration of third-party entities with UPI platforms for fund transfer, bill payment, and processing necessary financial transactions.
In India, the grant of a TPAP license serves as a virtual gateway for the effective working of third-party companies within the UPI ecosystem. Worried about the complex process of obtaining a UPI TPAP license? Connect our experts, ensuring seamless integration with the NPCI registration process in India.
Facilitates seamless UPI transactions for users
Enable businesses to integrate UPI payments easily
Drive innovation in digital payment applications
Expand financial inclusion across India
Over 40 TPAPs are active in India
Examples include PhonePe, Paytm, etc
Enable seamless UPI transactions and become a trusted player in India’s $4 trillion digital economy. Get your TPAP License with our experts at Enterslice effortlessly.
The roles and responsibilities of TPAP, ensuring smooth functioning of the UPI ecosystem, are discussed below:
TPAPs such as Google Pay, PhonePe, Amazon Pay, etc. act as a service provider to the Payment Service Provider (PSP) and participate in the UPI network through PSP banks.
TPAPs ensure strict compliance with all the requirements as prescribed by the PSP banks and NPCIs in relation to the TPAP's participation in UPI.
TPAPs are responsible for ensuring their systems are robust, secure, and capable of handling adequate UPI transactions without disruptions.
TPAPs ensure compliance with all the applicable laws, rules, regulations, and guidelines issued by statutory or regulatory authorities governing the UPI transactions in India.
All UPI-related transactions and data collected by TPAP must be stored exclusively within India, ensuring compliance with RBI’s data localisation norms.
TPAPs provide end-user customers with an option to raise a grievance through the TPAP’s grievance redressal facility, either through the UPI app or website.
TPAPs provide direct access to the data, systems, and information to the RBI, NPCI, or any agency nominated by them, for carrying out audits and compliance checks, whenever required.
The benefits of securing online TPAP registration, which primarily signifies compliance with the NPCI rules and regulations, are discussed below:
The grant of online TPAP registration enhances the credibility and trustworthiness of the service providers. Moreover, it assures compliance of users, banks, and merchants with UPI regulations, forecasting trust and legitimacy in their services.
Securing online TPAP registration allows access to a wide range of services available through the UPI platforms. Moreover, it enables the end-users to enhance their overall payment experience through UPI platforms.
Securing an online TPAP registration bridges the gap between partner banks and other UPI participants. Moreover, it ensures seamless integration of sponsor banks and other UPI participants, facilitating secure and efficient UPI transactions in India.
Securing an online TPAP registration allows businesses to leverage NPCI’s robust dispute management framework for the timely resolution of conflicts or issues that may arise during UPI transactions.
Securing an online TPAP registration enables the third-party application providers to comply with applicable laws, regulations, and guidelines. Moreover, it ensures their commitment to regulatory compliance and secure efficient operation within the UPI ecosystem.
Securing an online TPAP registration future-proofs your business for sustained growth and innovation within the dynamic UPI landscape. Moreover, it enables businesses to adapt to updates and new opportunities in the digital payment ecosystem.
The grant of a TPAP license enhances the transaction experience within the UPI ecosystem. It enables the service providers to offer value-added services like bill payments, mobile recharge, and other convenient services, enhancing the customer experience.
TPAP service providers offer user-friendly interfaces for making seamless UPI transactions and possess features like transaction history, contact management, and seamless UPI transactions.
The process to become a TPAP license holder in India requires compliance with the procedure as provided below:
The first step requires the entrepreneurs to ensure compliance with the eligibility criteria and other business needs as prescribed by the NPCI for TPAP applicants.
The next step requires the applicant to submit an online application to the National Payments Corporation of India (NPCI) for obtaining the TPAP license registration.
Next, the applicant must provide all necessary documents, including business registration papers, compliance certifications, and technical details of your platform.
Once all the documents are submitted, the NPCI reviews your application and supporting documents to assess your suitability.
Upon successful review of the application, a detailed evaluation of your business model, technical infrastructure, and security systems is carried out to ensure compliance with UPI standards.
Once approved, the NPCI issues the TPAP license, officially authorizing businesses to provide UPI-enabled services in India.
Lastly, the TPAPs must continuously follow NPCI, RBI, and data protection guidelines, along with periodic audits and reporting requirements.
The timeframe to apply for a TPAP registration in India typically takes around 2 to 3 months, varying based on the completeness of documentation, technical readiness, and compliance with NPCI guidelines.
The initial stage, which involves business planning, choosing the right legal entity, and preparing a framework for applying for a TPAP license, takes around 2 to 4 weeks.
It typically takes around 2 to 3 weeks for the preparation of necessary documents, including the incorporation certificate, board resolutions, and the compliance process.
It takes approximately 1 week to make a submission of the formal application to the National Payments Corporation of India (NPCI), along with the required forms and documents.
The timeline for conducting a thorough NPCI review and assessment, which includes due diligence, infrastructure inspection, and compliance checks, takes around 2 to 4 weeks.
The NPCI takes around 4 to 8 weeks to perform background verification, audits of technical & security infrastructure, and risk assessment.
After successful verification, the NPCI grants the TPAP license, authorizing the entity to provide UPI-enabled payment services within 2 to 4 weeks.
Upon the issuance of the license, it takes around 2 to 3 weeks to ensure compliance with the additional compliance steps, such as technical integration with UPI, security audits, and setting up the grievance redressal system.
The documents needed for obtaining a TPAP license are as discussed below:
Company’s certificate of incorporation
Memorandum & Articles of Association
Incorporation documents of the company
Company’s financial statements (either audited or self-certified)
KYC documents of directors and shareholders
Detailed business plan and business model
Comprehensive security and privacy policies
Bank proposal, bank shares, UAT details
Technical architecture documents
Formal declaration of compliance
Proof of net worth requirement for payment aggregators
PCI DSS compliance certificate for payment aggregators
Disaster recovery and business continuity plans
Additional documents (if required by NPCI)
The future of Third-party Application Providers (TPAPs) in India looks extremely promising, with UPI continuing to serve as the backbone of the digital payment ecosystem. TPAPs are set to play a crucial role in expanding financial inclusion, driving innovation, and shaping India’s journey towards a cashless economy.
With the combined support of the Government of India, the RBI, and the NPCI, TPAPs are expected to witness faster adoption, stricter regulatory oversight, and cutting-edge technological upgrades, making them even more significant in the payment landscape. However, the future of TPAP can be seen evolving across the following UPI branches, as provided below:
UPI for Credit
UPI Lite
International UPI Expansion
Merchant Ecosystem Expansion
In India, the digital payment ecosystem has witnessed exponential growth, with the UPI becoming the backbone of real-time financial transactions. To ensure its smooth functioning, the licensing, operations, and compliance of third-party application providers are governed by a comprehensive regulatory framework designed to provide security, stability, and trust among users.
The entities aspiring to function as a TPAP must ensure compliance with multiple regulations and guidelines issued by key authorities. Some of the regulatory frameworks are discussed below:
The NPCI (National Payments Corporations of India), acting as the developer and operator of the UPI platform, issues a comprehensive guideline governing the eligibility, technical standards, and operational guidelines for TPAPs.
RBI (Reserve Bank of India), as the apex regulator of payment systems in India, issues binding guidelines known as the Master Directions on Payment and Settlement Systems. These directions lay down the rules that TPAP follows for security, risk management, and financial stability within the UPI ecosystem.
In addition to the overarching RBI and NPCI norms, the UPI (i.e., Unified Payment Interface) functions under its own set of detailed procedural guidelines defining the technical, operational, and security standards for TPAPs.
TPAPs must ensure compliance with India’s data protection and privacy laws, safeguarding sensitive user information. As per the RBI and NPCI guidelines, all UPI-related data must be stored and processed only within India.
The common challenges faced while obtaining a TPAP license in India are as discussed below:
The penalties for non-compliance with the TPAP regulations in India are as discussed below:
The eligibility criteria for obtaining a TPAP license registration in India are as discussed below:
The applicants must adhere to the following post-TPAP licensing compliance requirements as discussed below:
The key difference between a TPAP license holder and a payment aggregator is as discussed below:
As a leading consulting firm, Enterslice ensures compliance with the NPCI-prescribed rules, regulating the licensing and participation of TPAP within the UPI ecosystem. Have a look at the following reasons why Enterslice is the right partner for obtaining a TPAP license registration in India:
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
-- Testimonials
“Using Enterslice for my NBFC registration was a good decision. They were transparent, and the process was completed without any issues. Communication was clear, and I felt confident throughout. Great service overall.”
Verified Customer
“I needed help with registering my NBFC and found Enterslice online. They handled everything professionally, and the process was quicker than I expected. I’m satisfied with their service, and I’d recommend them to anyone looking for this service.”
“Thanks to Enterslice, I got my FEMA registration done quickly and without stress. Their legal team is experienced, responsive, and very professional. They really understand foreign exchange laws in India”
“I reached out to Enterslice after struggling to understand FEMA registration on my own. Within a day, they had a plan ready. Super efficient, professional, and surprisingly friendly throughout the process. Would 100% recommend them!”
“Enterslice took care of our NBFC takeover very smoothly. I didn’t have to run around for documents or approvals. Highly recommend if you are looking for takeover experts.”
“I really appreciate how Enterslice handled the registration of my mortgage guarantee company. They took care of documents, compliance, and all the formalities. For me, the best part was their clear communication and regular updates.”
“We were struggling to manage gaps in our asset-liability structure, but Enterslice helped us sort it out. Their team was very professional and gave us clarity on how to stay compliant and risk-free”
“The team at Enterslice handled my alternative asset valuation with professionalism and precision. Their detailed reporting gave me the assurance I was seeking, and the timely delivery exceeded expectations.”
“I appreciated the professionalism and clarity Enterslice brought to the asset valuations process. Their valuation gave me the assurance I needed for future planning.”
“Enterslice delivered a strategic plan that balanced compliance and growth. Their expertise in NBFC capital adequacy was evident at every step, and their guidance gave us clarity in decision-making.”
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
(+91) 9870310368 
(+1) 6292766228