Overview
UPI TPAP Approval is mandatory for companies that want to operate as a Third Party Application Provider (TPAP) on the Unified Payments Interface (UPI) ecosystem. The approval is granted jointly by the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI).
Any fintech company, payment app, or digital platform intending to provide UPI-based payment services must obtain TPAP approval before onboarding users or processing UPI transactions.
At Adviso Compliance, we provide end-to-end assistance for UPI TPAP approval, including regulatory documentation, NPCI coordination, and compliance readiness.
What is UPI TPAP Approval?
A TPAP (Third Party Application Provider) is a non-bank entity authorized to provide UPI payment services to users through a mobile or web-based application. Examples include payment apps that allow users to send or receive money using UPI IDs.
UPI TPAP approval authorizes such entities to integrate with the UPI network via sponsor banks and operate under NPCI and RBI guidelines.
Who Needs UPI TPAP Approval?
UPI TPAP approval is required for:
Fintech companies offering UPI payment apps
Digital wallet and payment solution providers
E-commerce platforms integrating UPI payments
Startups developing UPI-based financial products
Companies planning to onboard users for UPI transactions
Without TPAP approval, operating a UPI payment application is not permitted.
Key Stakeholders in UPI TPAP Approval
UPI TPAP approval involves coordination with:
NPCI (National Payments Corporation of India)
RBI (Reserve Bank of India)
Sponsor Bank(s)
Technology Service Providers
All stakeholders must comply with strict regulatory and security requirements.
Why UPI TPAP Approval is Important
UPI TPAP approval is important because it:
Is legally mandatory for offering UPI services
Enables secure participation in the UPI ecosystem
Builds trust with users, banks, and regulators
Ensures compliance with RBI & NPCI guidelines
Prevents regulatory penalties and service suspension
Enables large-scale digital payment operations
Operating without approval can lead to immediate shutdown and penalties.
Eligibility Criteria for UPI TPAP Approval
To apply for TPAP approval, the applicant must:
Be a registered company in India
Have a sound financial and governance structure
Appoint sponsor bank(s) approved by NPCI
Meet IT security and data protection norms
Comply with RBI’s payment system regulations
NPCI evaluates eligibility thoroughly before granting approval.
Documents Required for UPI TPAP Approval
Documentation generally includes:
Certificate of incorporation
Memorandum & Articles of Association
Board resolutions
Business model and product details
Agreement with sponsor bank
IT security architecture and policies
Data localization and privacy policies
KYC and AML framework
Risk management and grievance redressal policy
Our team ensures all regulatory documents are prepared accurately.
UPI TPAP Approval Process
At Adviso Compliance, the process includes:
Step 1: Feasibility & Readiness Assessment
We assess business model, compliance readiness, and eligibility.
Step 2: Sponsor Bank Finalization
We assist in onboarding sponsor bank(s) for UPI integration.
Step 3: Documentation Preparation
All technical, financial, and regulatory documents are prepared.
Step 4: Application Submission
Application is submitted to NPCI for evaluation.
Step 5: Regulatory Review
NPCI and RBI review documents, security, and compliance framework.
Step 6: TPAP Approval
Upon approval, TPAP authorization is granted.
Timeline for UPI TPAP Approval
UPI TPAP approval generally takes 3 to 6 months, depending on:
Readiness of documentation
Sponsor bank coordination
Regulatory scrutiny
We ensure proactive follow-ups to reduce delays.
Post-Approval Compliance
After approval, TPAPs must comply with:
RBI & NPCI operational guidelines
Periodic audits and reporting
Transaction monitoring and fraud prevention
Data localization and cybersecurity standards
Customer grievance redressal mechanisms
Ongoing compliance is critical for continued operations.
Penalties for Non-Compliance
Non-compliance may result in:
Suspension of UPI services
Financial penalties
Cancellation of TPAP approval
Regulatory action by RBI or NPCI
Proper compliance management is essential.
Why Choose Adviso Compliance for UPI TPAP Approval?
Fintech regulatory experts
End-to-end TPAP approval support
Sponsor bank coordination
RBI & NPCI compliance handling
Transparent pricing
PAN-India service support
We help fintech companies enter the UPI ecosystem smoothly.
FAQs – UPI TPAP Approval
Yes, it is mandatory for all non-bank entities offering UPI services.
Yes, startups can apply if they meet eligibility and compliance requirements.
Yes, TPAP approval involves RBI oversight through NPCI.
Typically 3–6 months.