Note on Payment System Operators

Note on Payment System Operators

Brief Information:-
All persons and entity propose to operate payment systems and involved in the issuance of Pre-paid Payment Instruments in India shall have to comply with RBI guidelines.

Broad classification of pre-paid payment instruments:-

1. Closed System Payment Instruments :

This payment instruments facilitate the purchase of goods and services. These instruments do not permit cash withdrawal or redemption.

2. Semi-Closed System Payment Instruments :

This instruments which can be used for purchase of goods and services, including financial services at a group of clearly identified merchant locations/ establishments which have a specific contract with the issuer to accept the payment instruments. These instruments do not permit cash withdrawal or redemption by the holder.

3. Open System Payment Instruments:

These are payment instruments which can be used for purchase of goods and services, including financial services like funds transfer at any card accepting merchant locations (point of sale terminals) and also permit cash withdrawal at ATMs / BCs.

RBI Directions

Eligibility for Payment System Operators

1. Banks who comply with the eligibility criteria would be permitted to issue all categories of
pre-paid payment instruments.

2. Non-Banking Financial Companies (NBFCs) and other persons would be permitted to issue
only closed and semi-closed system payment instruments, including mobile phone based pre-paid payment instruments.

Capital Requirements

1. Banks and Non-Banking Financial Companies which comply with the Capital Adequacy requirements prescribed by Reserve Bank of India from time-to-time, shall be permitted to issue pre-paid payment instruments.

2. All other persons, seeking authorisation henceforth, shall have a minimum paid-up capital of Rs. 500 lakh and minimum positive net worth of Rs. 100 lakh at all the times.

Guidelines of RBI for Payment System Operators

1. The guidelines on Know Your Customer/Anti-Money Laundering/Combating Financing of Terrorism guidelines issued by the Reserve Bank of India.

2. Provisions of Prevention of Money Laundering Act, 2002 and Rules framed thereunder, as amended from time to time, are also applicable to PPI issuers.

3. For cross border transactions Foreign Exchange Management (Current Account Transactions) Rules, 2000 applicable

4. Persons issuing pre-paid payment instruments shall maintain a log of all the transactions undertaken using these instruments.

5. Persons shall also file Suspicious Transaction Report (STR) to Financial Intelligence Unit – India (FIU-IND).

6. Escrow account guideline of RBI.

7. Payment and Settlement Systems Regulations, 2008.

Documents to be submitted to RBI for obtaining certificate and Registration from RBI

An indicative list of documents/information to be furnished along with the application. All
documents/information is to be submitted in duplicate.

1. Application to be submitted.

2. Copy of MOA and AOA.

3. Copy of Shop Act Licence

4. Last Three year Audited Balance Sheets

5. Current Accounts Details

6. Board Resolution to authorized Director to fill Application

7. Bankers’ report on the functioning of the applicant account and its financial health in sealed cover

8. List of Shareholding Pattern of company

Tenure:

If documents are proper then we can get license within 6 months time span.

Place of rendering Services:
The place of rendering services generally shall be our office situated at 2 nd Floor, 496B, Om Apartment, Near KCC Classes, Kasba Peth, Pune – 411 011.

For, CS Pramodkumar R. Ladda
Company Secretary

Land line No. 020-24570055
Office Cell Nos: 9404923393, 8624919609, 9175395604
Personal Cell No. 9922735476 / 9595271145
Skype id: pramodladda
OFFICE: 2nd Floor, OM Apartment, SR. No. 496/B, Near KCC Classes,
Opp Kasba Peth Post office, Kasba Peth, Pune 411011
www.csladda.com
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Our Services

Along with Company Law we are also dealing in all types of Licensing, registrations and Liasoning services. Few areas in which we had already served to our clients are :

a) Business Setup Services
b) MPCB (Maharashtra Pollution Control Board) Consent To Establish
c) MIDC (Maharashtra Industrial Development Corporation) Provisional
d) Factory Inspector Approval
e) Ministry of Environment and Forests (MOEF)
f) Water Connection Sanction from MIDC
g) MSEDCL (Power) Approval
h) PESO (Petroleum and Explosive Safety Organization)
i) CCOE (Chief Controller of Explosives) Approval
j) Support for EIA (Environmental Impact Assessment) (EIA documentation by MITCON or other Authorities)
k) MPCB Consent to Operate
l) Any other statutory approval not indicated above
m) MIDC (Maharashtra Industrial Development Corporation) approvals
n) Fire (Petroleum and Explosive) Department approvals
o) SEZ (Special Economic Zones)
p) EOU (Export Oriented Units)
q) STPI (Software Technology Park of India)
r) PSARA License for Security Guard providing Agencies
s) Hotel Setup and Subsidies
t) Finding of land (especially in MIDC area) for Companies and do necessary things till allotment of land
u) RBI (Reserve Bank of India) various permissions and compliances
– Recently we arranged FFMC (Full Fledged Money Changer) license for Pune based Company where Company now Authorised to do business of Dollar or other foreign currency conversion against INR
– FEMA (Foreign Exchange Management Act)
– FDI (Foreign Direct Investment)
– NBFC (Non Banking Financial Companies)
– Private Banking license (recent one week announcement by RBI)