What Is the Cost of Obtaining a TPAP License in India?

With the rapid growth of digital payments in India, businesses offering UPI-based services are required to comply with strict regulatory norms. One such important approval is the TPAP license, issued to Third Party Application Providers (TPAPs) that facilitate UPI transactions. If you are planning to launch a UPI-based app or integrate UPI services into your platform, understanding the cost of obtaining a TPAP license in India is crucial for budgeting and compliance planning.

What Is a TPAP License?

A TPAP license allows non-bank entities to offer UPI payment services in partnership with banks. This license is regulated by the National Payments Corporation of India (NPCI) and operates under the guidelines issued by the Reserve Bank of India (RBI). Popular payment apps operating in India function as TPAPs after obtaining necessary approvals.

Why Is a TPAP License Mandatory?

Any digital platform that initiates, processes, or enables UPI transactions for users must be authorized as a TPAP. Operating without approval can lead to regulatory action, service suspension, and reputational damage.

Cost Components of Obtaining a TPAP License

The cost of obtaining a TPAP license is not limited to government fees alone. It involves several compliance and operational expenses:

1. Application and Processing Costs

While NPCI does not charge a fixed public “license fee,” applicants incur costs related to documentation, application preparation, and regulatory coordination.

2. Technology and Infrastructure Costs

TPAP applicants must invest in robust IT systems, secure servers, encryption frameworks, disaster recovery setups, and cybersecurity mechanisms. These technology costs form a significant part of the overall expenditure.

3. Compliance and Audit Costs

TPAPs are required to follow RBI and NPCI compliance standards, including regular system audits, security audits, and compliance reporting, which involve recurring professional fees.

4. Bank Partnership Expenses

TPAPs must partner with one or more sponsor banks. Commercial arrangements with banks may include integration fees, revenue-sharing models, and operational charges.

5. Professional and Consultancy Fees

Legal, regulatory, and compliance experts are often engaged to manage the application, documentation, NPCI coordination, and post-approval compliance.

Estimated Total Cost for TPAP License in India

On average, the total cost of obtaining and operationalizing a TPAP license in India may range from ₹50 lakhs to ₹2 crores or more, depending on:

• Scale of operations

• Technology readiness

• Number of bank partnerships

• Security and compliance infrastructure

These costs may vary significantly based on business model and transaction volumes.

Timeline for TPAP Approval

The TPAP approval process can take 6 to 9 months, depending on documentation readiness, NPCI review cycles, and successful system audits.

Ongoing Costs After License Approval

TPAPs must continue to incur costs for:

• Periodic audits and certifications

• System upgrades and cybersecurity

• Compliance reporting to NPCI and RBI

• Bank settlement and operational charges

How Corpzo Helps with TPAP Licensing

At Corpzo, we provide end-to-end assistance for TPAP license applications in India. Our services include eligibility assessment, documentation support, NPCI coordination, bank partnership facilitation, compliance planning, and post-license advisory.

🌐 Website: www.corpzo.com📞 Contact: +91 9999 139 391

FAQs – TPAP License Cost in India

1. Is there a fixed government fee for TPAP license?

There is no standard public license fee, but significant compliance and operational costs are involved.

2. Who issues the TPAP license in India?

TPAP approvals are regulated by NPCI under RBI guidelines.

3. How long does it take to obtain a TPAP license?

Typically 6–9 months, depending on audits and approvals.

4. Can startups apply for a TPAP license?

Yes, startups can apply if they meet technical, financial, and compliance requirements.

5. How does Corpzo assist with TPAP licensing?

Corpzo supports documentation, regulatory coordination, bank partnerships, and ongoing compliance.