Which KYC Documents Do Payment Platforms Ask Indian Businesses For?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Payment platforms in India ask for KYC documents because RBI requires a payment aggregator to complete customer due diligence on every merchant. Individuals and sole proprietors give PAN and an officially valid document such as Aadhaar or a passport. Proprietors add two proofs of business. Companies, partnerships and trusts give registration papers, PAN and beneficial owner details.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Indian freelancers, sole proprietors, partnerships, companies and trusts onboarded as merchants by a payment aggregator, including cross-border (PA-CB) platforms | RBI Master Direction on Regulation of Payment Aggregator (15 September 2025), read with RBI's KYC directions (KYC Master Direction, 2016 and the Commercial Banks KYC Directions, 2025) | KYC at onboarding; merchants onboarded up to 31 December 2025 had one year from 15 September 2025 to meet the new due diligence rules | Not applicable to the merchant as a fine; incomplete KYC can stop onboarding or settlement of funds | 9 Oct 2026 |
What are KYC documents for payment platforms?
KYC documents for payment platforms are the identity, address and business records a payment aggregator collects before it accepts money on your behalf. RBI's Master Direction on Payment Aggregators (paragraph 13a) says a PA must carry out customer due diligence (CDD) of its merchants in line with RBI's KYC directions.
- Identity: For an individual, RBI's RBI KYC Directions, 2025 (paragraph 23) list Aadhaar or proof of possession of Aadhaar, any officially valid document (OVD), or a KYC Identifier, along with PAN or Form No. 60.
- OVD: An OVD means the passport, driving licence, proof of possession of Aadhaar number, Voter's Identity Card, NREGA job card signed by a State Government officer, or the National Population Register letter (KYC Directions, 2025, definition (xiv)).
- Business proof: A sole proprietor gives any two documents that prove business activity in the firm's name, such as a Udyam Registration Certificate, GST certificate or IEC (KYC Directions, 2025, paragraph 31).
- Entity papers: A company, partnership firm or trust gives certified copies of registration documents, its PAN, and documents of beneficial owners and authorised signatories (KYC Directions, 2025, paragraphs 33 to 35).
- CKYCR record: With the merchant's consent, the PA first retrieves the merchant's KYC record from the Central KYC Records Registry (Master Direction on Payment Aggregators, paragraph 13a).
The platform also runs a background and antecedent check on the merchant and keeps watching later transactions against your business profile (Master Direction on Payment Aggregators, paragraphs 13c and 13h). Read more in What Is KYC?.
Which Indian businesses must give KYC documents to a payment platform?
Every Indian business that a payment aggregator onboards as a merchant must complete KYC, whatever its legal form. RBI defines a merchant to include exporters and overseas sellers (Master Direction on Payment Aggregators, paragraph 4f), so freelancers and companies collecting export payments through a PA-CB are covered.
| Entity type | Applicable | Documents RBI lists | Best for |
|---|---|---|---|
| Individual freelancer | Yes | Aadhaar or other OVD, or KYC Identifier, plus PAN or Form No. 60 (paragraph 23) | Freelancers billing foreign clients in their own name |
| Sole proprietorship | Yes | Proprietor's individual KYC plus any two proofs of business, or one with contact point verification (paragraphs 30 to 32) | Consultants and agencies trading under a business name |
| Private or public company | Yes | Certificate of incorporation, MoA and AoA, company PAN, board resolution and power of attorney, beneficial owner documents, senior management names, registered office (paragraph 33) | IT services, SaaS and export companies |
| Partnership firm | Yes | Registration certificate, partnership deed, firm PAN, beneficial owner documents, names of all partners, registered office (paragraph 34) | Small firms with two or more partners |
| Trust | Yes | Registration certificate, trust deed, PAN or Form No. 60, names of beneficiaries, trustees and settlor, list of trustees (paragraph 35) | Trusts receiving foreign payments for services |
| Unincorporated association or body of individuals | Yes | Managing body resolution, PAN or Form No. 60, power of attorney, beneficial owner documents (paragraph 36) | Informal groups that collect payments jointly |
How does a payment platform complete KYC for an Indian business?
A payment platform completes KYC by fetching your record from CKYCR where possible, then collecting and verifying documents, then checking your background. The order below follows RBI's Master Direction on Payment Aggregators (paragraphs 13 and 15).
- You give consent and the platform tries to retrieve your KYC record from CKYCR (PA Master Direction, paragraph 13a).
- If no CKYCR record exists, or it is out of date, the platform collects documents under RBI's KYC rules, such as PAN, an OVD and business proofs (PA Master Direction, paragraph 13b).
- The platform verifies identity documents. It may use Video based Customer Identification Process (V-CIP) or digital KYC, including through agents in assisted mode (PA Master Direction, paragraph 15a).
- The platform runs a background and antecedent check on the merchant (PA Master Direction, paragraph 13c).
- The platform links your settlement bank account and puts validation checks in place so funds reach only your account (PA Master Direction, paragraph 13g).
- After onboarding, the platform monitors your transactions against your business profile (PA Master Direction, paragraph 13h).
Is there a simpler KYC route for small merchants on payment platforms?
Yes. If the merchant's annual turnover does not exceed Rs 40 lakh, or its annual export turnover does not exceed Rs 5 lakh, RBI allows an alternative process where CKYCR is not available (Master Direction on Payment Aggregators, paragraph 13b).
- The platform obtains a copy of PAN or Form 60 and verifies PAN with the issuing authority.
- The platform conducts contact point verification (CPV), meaning a physical check of the merchant's address or place of business.
- The platform obtains a certified copy of one OVD of the proprietor or power of attorney holder, and verifies one business or entity document.
How does video KYC (V-CIP) work for payment platform onboarding?
V-CIP is a live, consent-based audio-visual interaction in which an authorised official identifies the customer with facial recognition (KYC Directions, 2025, definition (xvi)). The PA Master Direction allows assisted V-CIP for the individual, proprietor, authorised signatory or beneficial owner of a merchant.
- The official captures a clear image of the PAN card unless an e-PAN is given, and a printed copy of an e-document is not valid for V-CIP (KYC Directions, 2025, V-CIP conditions (xi) and (xii)).
- An Aadhaar XML file or Secure QR Code must not be older than three working days on the date of V-CIP (KYC Directions, 2025, V-CIP condition (viii)).
Who counts as a beneficial owner for payment platform KYC?
For a company, a beneficial owner is a natural person who owns or is entitled to more than 10 percent of shares, capital or profits, or who controls the company by other means (KYC Directions, 2025, definition (iv)). For a partnership firm, the threshold is more than 10 percent of capital or profits.
- Each beneficial owner gives the same individual documents as a single customer: Aadhaar or OVD, and PAN or Form No. 60.
- Control for a company includes the right to appoint a majority of directors or to control management or policy decisions.
Which KYC documents does each entity type give a payment platform?
The documents depend on your legal form. An individual gives identity and PAN, a proprietor adds business proofs, and a legal entity gives incorporation papers plus the KYC of its beneficial owners and signatories (RBI KYC Directions, 2025, paragraphs 23 and 30 to 36). Platforms may also ask for other documents on your business and financial status.
| Document | Who gives it | What it proves | Best for |
|---|---|---|---|
| PAN or Form No. 60 | All customers and entities | Tax identity; Form No. 60 is the alternative where PAN is not held (paragraph 23(5)) | Every onboarding |
| Aadhaar, passport, driving licence or Voter ID | Individuals, proprietors, partners, directors, beneficial owners | Identity and address as an OVD | Individual freelancers and signatories |
| Utility bill up to two months old, property tax receipt | Individuals whose OVD lacks a current address | Deemed OVD for proof of address only (definition (xiv)) | People who moved since their OVD was issued |
| Udyam Registration Certificate | Sole proprietors | Proof of business activity | Registered MSMEs |
| GST certificate | Sole proprietors | Proof of business activity | GST-registered exporters |
| IEC issued by DGFT | Sole proprietors | Proof of business activity | Proprietors who already hold an IEC |
| Complete income tax return showing the firm's income | Sole proprietors | Proof of business activity; the acknowledgement alone does not count | Proprietors with no business registration |
| Certificate of incorporation, MoA and AoA, board resolution | Companies | Legal existence and authority to transact (paragraph 33) | Private and public companies |
| Registration certificate and partnership deed | Partnership firms | Legal existence and partners (paragraph 34) | Partnership firms |
| Registration certificate and trust deed | Trusts | Legal existence and trustees (paragraph 35) | Trusts |
What happens if KYC documents for a payment platform are incomplete or rejected?
If KYC is incomplete, the platform cannot onboard you, because RBI requires CDD before a PA aggregates funds for a merchant (Master Direction on Payment Aggregators, paragraph 13). Rejections usually come from mismatched details, missing business proofs or out-of-date records.
- Name mismatch: Under V-CIP, the photograph and identification details in Aadhaar or OVD and PAN must match the customer and the details given (KYC Directions, 2025, V-CIP condition (xiii)). A different spelling across documents can stall verification.
- One business proof: A proprietor with only one proof of business may be accepted at the platform's discretion, but only after contact point verification (KYC Directions, 2025, paragraph 32).
- ITR acknowledgement: A proprietor's income tax return counts as business proof only when the complete return is given, duly authenticated or acknowledged. The acknowledgement page alone does not qualify (KYC Directions, 2025, paragraph 31(7)).
- Old address: An OVD with an outdated address needs a deemed OVD such as a utility bill no more than two months old (KYC Directions, 2025, definition (xiv)).
- Stale e-KYC file: An Aadhaar XML file or QR code older than three working days cannot be used for V-CIP (KYC Directions, 2025, V-CIP condition (viii)).
- Settlement block: The platform must credit funds only to the merchant's own bank account (Master Direction on Payment Aggregators, paragraph 13g), so a payout account in another name will fail checks.
To fix a rejection, ask the platform which document or field failed, correct the mismatch at the source (for example, update the PAN or Aadhaar record), and resubmit the document set for your entity type. If a payment is already held, ask the platform what it needs to release it.
What is the timeline for KYC on payment platforms?
KYC is due at onboarding, before the platform settles any funds to you. RBI gave PAs one year from 15 September 2025 to bring merchants onboarded up to 31 December 2025 in line with the new due diligence rules, and merchants onboarded from 1 January 2026 must meet them at onboarding (Master Direction on Payment Aggregators, paragraph 13j).
| Trigger event | Due date | Filed where | Best for |
|---|---|---|---|
| New merchant onboarding from 1 January 2026 | At onboarding, under the PA Master Direction rules | With the payment aggregator, via CKYCR or document upload | Freelancers and firms signing up now |
| Merchant onboarded up to 31 December 2025 | Within one year from 15 September 2025 | With the payment aggregator (paragraph 13j) | Businesses with older platform accounts |
| High-risk customer periodic updation | At least once every two years | With the regulated entity (KYC Master Direction and 2025 Directions, paragraph 42) | Customers rated high risk |
| Medium-risk customer periodic updation | At least once every eight years | With the regulated entity | Customers rated medium risk |
| Low-risk customer periodic updation | At least once every 10 years | With the regulated entity | Customers rated low risk |
| V-CIP using Aadhaar XML or QR code | File not older than three working days on the V-CIP date | During the video call | Merchants using video KYC |
What mistakes do Indian businesses make with payment platform KYC documents?
- Wrong entity: Signing up as an individual while invoicing as a company or partnership. The KYC set and settlement account must match the entity that earns the income.
- Missing BO details: Leaving out a partner or shareholder who holds more than 10 percent. Each beneficial owner needs individual KYC.
- Printed e-documents: Showing a printout of an e-PAN or other e-document during video KYC, which RBI does not accept for V-CIP.
- Third-party account: Giving a family member's bank account for payouts. Funds can be credited only to the merchant's own account.
- Ignoring updates: Not responding to a periodic KYC update request. Keep PAN, address and ownership details current with the platform.
- Assuming one size: Expecting every platform to ask for the same set. RBI sets the minimum, and a platform may ask for more under its own policy.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Reserve Bank of India (Commercial Banks - Know Your Customer) Directions, 2025 (Updated as on October 1, 2026), Definitions (iv) Beneficial Owner, (xiv) OVD, (xvi) V-CIP; paragraphs 23, 26-27, 30-37, 42; V-CIP conditions (viii), (xi)-(xiii) (checked 9 Oct 2026)
- Master Direction - Know Your Customer (KYC) Direction, 2016, Definition of Regulated Entities (includes Payment System Providers); paragraph 18 V-CIP; periodic updation (checked 9 Oct 2026)
- RBI Master Direction on Regulation of Payment Aggregator (PA), 15 September 2025, Paragraphs 4f, 11, 13, 14, 15 (checked 9 Oct 2026)
Frequently asked questions
Is Aadhaar mandatory for KYC on a payment platform in India?
Aadhaar is not the only option. RBI's RBI KYC Directions, 2025 let an individual give proof of possession of Aadhaar, any other officially valid document such as a passport, driving licence or Voter ID, or a KYC Identifier for CKYCR. PAN or Form No. 60 is needed in each case.
Do freelancers need a GST certificate for payment platform KYC?
No single document is mandatory for proof of business. A sole proprietor gives any two from RBI's list, which includes a GST certificate, Udyam Registration Certificate, IEC, a complete income tax return and utility bills (KYC Directions, 2025, paragraph 31). A freelancer onboarded as an individual gives individual KYC only.
What is a KYC Identifier and how does CKYCR help with payment platform onboarding?
A KYC Identifier is the number linked to your record in the Central KYC Records Registry (CKYCR). With your consent, a payment aggregator retrieves that record during onboarding instead of collecting every document again (Master Direction on Payment Aggregators, paragraph 13a). If the record is outdated, the platform follows the full KYC process.
Does an LLP have a separate KYC document list in the RBI directions?
The KYC Directions, 2025 list documents for companies, partnership firms, trusts and unincorporated associations, and paragraph 37 covers other juridical persons. They do not set out a separate LLP list. Check with your platform which documents it accepts for an LLP, such as its incorporation certificate, LLP agreement and PAN.
Can a payment aggregator use an agent for KYC of an Indian merchant?
Yes, for limited tasks. A non-bank PA may use agents for digital KYC and assisted V-CIP, and it must carry out due diligence on those agents (Master Direction on Payment Aggregators, paragraph 15). The final responsibility for merchant due diligence stays with the payment aggregator itself.
Do PA-CB platforms need extra documents for export payments beyond KYC?
Beyond KYC, a PA-CB must give the exporter's AD bank the documents or information needed to close EDPMS entries, and each transaction is capped at Rs 25 lakh (Master Direction on Payment Aggregators, paragraph 11). Platforms may ask for invoices to support this. See PA-CB transaction limits for more.
How can you check whether a payment platform asking for KYC is RBI authorised?
Check the platform's name on RBI's website before sharing PAN, Aadhaar or bank details. RBI's Master Direction on Payment Aggregators applies to bank and non-bank payment aggregators and refers to existing PAs whose authorisation applications are pending. Our guide on checking RBI authorisation explains how to read RBI's lists.