What are the requirements for obtaining a UPI TPAP license?

The growth of digital payments in India has revolutionized how consumers and businesses transact — and the role of National Payments Corporation of India (NPCI) remains central to this transformation. For businesses aspiring to offer UPI-enabled services via their own apps, obtaining a TPAP license (Third-Party Application Provider license) is essential. The TPAP license enables third-party service providers to integrate with the Unified Payments Interface (UPI) network and deliver seamless payment solutions to users and merchants. Here's a comprehensive guide to the requirements, process, and best practices for obtaining a UPI TPAP license — with expert support from Corpzo (www.corpzo.com).

What is a TPAP License and Why It Matters

A TPAP license authorizes an entity to act as a third-party application provider in the UPI ecosystem. Unlike a traditional payment aggregator license (regulated by the Reserve Bank of India, RBI), a TPAP license is governed by NPCI, and allows the license-holder to offer UPI payments via their own mobile app or digital platform — without directly handling customer funds.

With a TPAP license, businesses gain:

Official access to UPI APIs and integration support from NPCI and partner banks

Regulatory compliance and legitimacy to operate within the UPI ecosystem

Trust and credibility with users, merchants, and financial institutions

Eligibility Criteria & Core Requirements

To apply for a TPAP license, your business must meet certain prerequisites defined by NPCI. Key requirements include:

Legally incorporated entity: The applicant must be a registered company, LLP, or recognized legal entity under Indian law.

Robust technical infrastructure: A scalable, secure IT architecture capable of integrating UPI APIs, handling transactions, and ensuring data security.

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Partnership with a PSP Bank: TPAPs must onboard through a sponsor or partner bank (PSP bank) that is a member of the UPI network.

Compliance with security & data norms: Adherence to all NPCI and regulatory rules on data storage (data must be stored in India), transaction security, audits, and privacy protection.

Clear business model and financial stability: Demonstrable business plan, adequate resources, and compliance readiness to support UPI operations.

Additionally, foreign companies may apply only if they operate through a registered Indian legal entity.

Documentation & Application Requirements

When you apply to NPCI for a TPAP license, prepare to submit the following:

Certificate of incorporation / registration under Companies Act or relevant legislation

Memorandum & Articles of Association (or LLP deed) / business registration documents

KYC documents of directors/ shareholders / key personnel (identity & address proofs)

Detailed business plan including scope of services, transaction flows, and risk controls

Technical architecture details, security policies, encryption standards, data-storage compliance certificate

Bank sponsorship agreement with a PSP bank for facilitating UPI transactions

Application Process — Step-by-Step

Eligibility check & internal preparation: Ensure your entity meets eligibility, partner bank is identified, technical & security compliance ready.

Register and submit application via NPCI portal: Fill in required details (entity name, address, contact, directors, bank partner, etc.) and upload documents.

Review & verification by NPCI: NPCI evaluates entity credentials, financial stability, technical readiness, data compliance, and bank partnership.

Security & infrastructure audits: Third-party audits may be required to assess cybersecurity, data storage, transaction compliance, and integration readiness.

Approval and issuance of TPAP license: Once all criteria are met and checks passed, NPCI grants the license, enabling the business to integrate UPI APIs and launch UPI-enabled services.

Post-license compliance & ongoing obligations: Maintain data in India, regular audits, compliance with NPCI/RBI rules, grievance redressal, and periodic reporting.

Compliance & Operational Responsibilities of TPAPs

Once licensed, TPAPs have several ongoing responsibilities:

Ensure all UPI transactions and user data are securely handled through infrastructure compliant with NPCI security standards.

Store all transaction data only within India as per NPCI policy.

Provide clear user-grievance redressal mechanisms via app, email, or support channels.

Undergo periodic audits and make data/infrastructure available to audits by NPCI, RBI, or other regulatory authorities when required.

Comply with all applicable laws, regulations, and guidelines governing digital payments, data protection, and consumer rights.

Why Businesses Should Consider a TPAP License — and How Corpzo Helps

With the rapid expansion of digital payments, obtaining a TPAP license unlocks significant opportunities: you gain direct access to the UPI ecosystem, can offer payments to customers and merchants, and position your app or platform as a trusted player in digital finance.

At Corpzo (www.corpzo.com ), we provide end-to-end TPAP licensing support:

Eligibility checks & bank-sponsorship liaison

Document preparation (company registration, KYC, MoA/AoA, compliance certificates)

Technical compliance & data-storage audit coordination

Online application filing with NPCI

Follow-up, audit assistance, and post-license compliance support

Our specialists guide you through every requirement so you can focus on building your product while we manage regulatory and compliance hurdles.

Trending FAQs on UPI TPAP License

1. Who can apply for a TPAP license?

Registered Indian companies, fintech firms, payment-service providers, e-commerce players, or any legal entity with a ready app and a PSP bank partnership.

2. Does TPAP need a large capital base like a Payment Aggregator?

No. Since TPAPs do not handle funds directly, NPCI does not mandate a high net-worth — but you must maintain robust technical and operational infrastructure.

3. Is a TPAP license mandatory to integrate UPI in an app?

Yes. Without TPAP authorization (and a sponsor PSP bank), integrating UPI APIs for payments is not allowed under NPCI framework.

4. Can foreign companies apply for TPAP license?

Only if they operate through a registered Indian entity that meets NPCI’s eligibility and compliance requirements.

5. What compliance is required after getting the license?

Secure data storage in India, periodic audits, user grievance mechanisms, compliance with NPCI & RBI guidelines, and audit readiness.

Final Thoughts

Getting a UPI TPAP license is a gateway for businesses to join India’s booming digital payment ecosystem. The requirements are rigorous — from legal incorporation and bank partnership to technical infrastructure and compliance readiness — but with the right preparation and expert support, the journey becomes smooth and manageable.

If you are planning to launch or expand a UPI-enabled app, consider partnering with Corpzo. We provide comprehensive guidance and support at every step, ensuring that your TPAP license application is robust, compliant, and ready for approval. Visit www.corpzo.com

today to start your journey toward secure, licensed, and growth-ready digital payment services.