{"id":2465,"date":"2021-01-25T14:06:15","date_gmt":"2021-01-25T08:36:15","guid":{"rendered":"https:\/\/cashfree.com\/blog\/?p=2465"},"modified":"2025-05-26T12:45:25","modified_gmt":"2025-05-26T07:15:25","slug":"what-are-the-kyc-procedures-for-merchant-onboarding","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/","title":{"rendered":"Onboarding Merchants on PSPs: Complete KYC Steps Explained"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a8f0446bdbc8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #364250;color:#364250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #364250;color:#364250\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a8f0446bdbc8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/#Merchant_Onboarding_Meaning\" >Merchant Onboarding Meaning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/#What_is_Merchant_KYC\" >What is Merchant KYC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/#Onboarding_Merchants_The_Complete_KYC_Procedure\" >Onboarding Merchants: The Complete KYC Procedure<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\"><em>Onboarding merchants on a Payment Service Provider platform includes various intricate steps. In this blog, we will break down each step involved in the <strong>merchant onboarding process<\/strong> along with KYC compliance requirements.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">As a <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\">payment aggregator (\u2018PA\u2019)<\/a><\/mark><\/strong>, when we on-board merchants, we need to address certain risks that arise, like fraud, excessive chargebacks, money laundering, tax evasion, etc. For this, regulatory guidelines and applicable laws require us to adopt several precautionary measures, including the <a href=\"https:\/\/www.cashfree.com\/kyc-verification\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Know-Your-Customer (\u2018KYC\u2019)<\/mark><\/strong><\/a> and merchant due diligence procedures. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this blog, we will try to understand what onboarding merchants on a PSP actually entails. We will also deep dive into the merchant onboarding process and the KYC requirements therein.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Merchant_Onboarding_Meaning\"><\/span>Merchant Onboarding Meaning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">First, let\u2019s go back to the basics. What is merchant onboarding, anyway?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In simple terms, merchant onboarding is the process of signing up a business on a <a href=\"https:\/\/www.cashfree.com\/blog\/payment-service-provider\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Payment Service Provider\u2019s (PSP)<\/mark><\/strong><\/a> platform.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In India, usually, the PSPs are payment aggregators that offer payment collection, disbursement, <a href=\"https:\/\/www.cashfree.com\/card-issuance\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">BaaS<\/mark><\/strong><\/a> and identity verification services.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We, at Cashfree Payments, are one the biggest <a href=\"https:\/\/www.cashfree.com\/blog\/payment-aggregator\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>Payment Aggregators<\/strong><\/mark><\/a> in India. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We carry out a range of checks for merchants, which start prior to onboarding and continue until the end of your relationship with us. The processes discussed may be replicated by financial service entities or any other businesses that would want to onboard merchants onto their platform &#8211; both to comply with regulations and to mitigate risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-kyc\"><span class=\"ez-toc-section\" id=\"What_is_Merchant_KYC\"><\/span><strong>What is Merchant KYC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Regulated financial institutions like banks, PAs, investment companies, etc., conduct KYC whenever a client attempts to open an account with them or onboard with them (eg.: the KYC process you undertake when <a href=\"https:\/\/www.cashfree.com\/blog\/open-banking-api\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">opening a bank<\/mark><\/strong><\/a> account). A client may be an individual or a legal entity. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But what is KYC Compliance?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>aim of merchant KYC is <\/strong>to establish the client\u2019s identity, address and legitimacy via verification of its key documents. In combination with due diligence and other mandated checks, these allow us to say identify potential fraudsters, and shell companies, detect money laundering, etc. (Related Read: Challenges of&nbsp;tackling merchant fraud). Often non-regulated entities, like an online marketplace, for example, need to also perform a full or partial KYC as a precaution. These allow us to take a step towards securing not only ourselves but also the end customers and the financial system as a whole.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As PAs we can service a range of businesses, from e-commerce marketplaces, financial services like <a href=\"https:\/\/www.cashfree.com\/blog\/lending-as-a-service\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">lending<\/mark><\/strong><\/a>, <a href=\"https:\/\/www.cashfree.com\/blog\/what-is-expense-management\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">wealth management<\/mark><\/strong><\/a>\/ credit management\/payments\/insurance, etc., edtech, health tech, digital entertainment and streaming services like video\/music\/gaming, subscriptions like for SaaS companies, hospitality\/ transportation services like taxi aggregators\/hotel booking aggregators\/vehicle rentals, etc. The checks we undertake thus vary from business to business, particularly based on the merchant\u2019s legal form and line of business.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"770\" height=\"735\" data-attachment-id=\"2538\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/image-12\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?fit=2400%2C2292&amp;ssl=1\" data-orig-size=\"2400,2292\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-12\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?fit=770%2C735&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/01\/image-12-1024x978.png?resize=770%2C735&#038;ssl=1\" alt=\"\" class=\"wp-image-2538\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?resize=1024%2C978&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?resize=300%2C287&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?resize=768%2C733&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?resize=1536%2C1467&amp;ssl=1 1536w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-12.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><figcaption class=\"wp-element-caption\">What is included in the onboarding process?<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-complete-kyc-procedure\"><span class=\"ez-toc-section\" id=\"Onboarding_Merchants_The_Complete_KYC_Procedure\"><\/span><strong>Onboarding Merchants<\/strong>: <strong>The Complete KYC Procedure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Reserve Bank of India\u2019s (\u2018RBI\u2019) Master KYC Direction, the RBI PA Guidelines and the Prevention of Money Laundering Act, 2002 (the \u2018PMLA\u2019) (among others), together require the following 8 stage process:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-1-the-kyc-document-check-or-cdd-process\">Step 1: <strong>The KYC document check or CDD process<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The first stage of onboarding merchants is the KYC document check or the Customer Due Diligence Check (\u2018CDD\u2019) process. It can be one or more of the following forms- Individual KYC and Business KYC:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Individual KYC:<\/strong> When you are a merchant who is an individual (eg.: a sole proprietor), we carry out a \u2018KYC\u2019 process, or CDD for an individual. Broadly, we verify your identity via an \u2018Officially Valid Document\u2019 or OVD check (identity documents like <a href=\"https:\/\/www.cashfree.com\/aadhaar-verification\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Aadhaar<\/mark><\/strong><\/a>, passport, driving license, etc.), individual <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/PAN-verification\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\">PAN verification<\/a><\/mark><\/strong>, and if necessary, current address proof check (utility bills, etc.). We can also ask for more documents to verify your financial\/business status, say asking for your business registration documents.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Business KYC<\/strong>: When you are a business partner we are onboarding, we carry out a Business KYC process, or CDD for a business. Here we replace the OVD check with an \u2018entity-proof\u2019 check. This again differs based on what type of entity you are legal. For example, if you are a company, we need to verify your certificate of incorporation, memorandum and articles of association, etc. If you are a trust\/partnership, on the other hand, we will need your trust\/partnership deed, registration certificates, etc. Once we\u2019ve verified your licensing\/registration, we need to ascertain that the officer\/employee transacting with us on your behalf has the authority from you to do so. For this, we need your relevant Board resolutions, power of attorney, etc. Next, we need your Business PAN, and address proof (GST) if your licensing\/registration documents don\u2019t reflect your current address. We also need to conduct&nbsp; \u2018beneficial owner\u2019 checks, we need to verify who has actual ownership\/control, like the directors, shareholders, etc., and carry out the \u2018KYC\u2019 process separately for them. We also verify numerous other documents for due diligence processes (discussed below).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Platform KYC (Onboarding Vendor)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Lastly, depending on your line of business, you may have on-boarded end merchants. In other words, you are a merchant onboarding vendors. Hence, you may be needed to carry out a KYC or verification process for them as well, whether under regulations that apply to you or as an additional diligence measure. A supplementary check you can carry out here is a <a href=\"https:\/\/www.cashfree.com\/bank-account-verification\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">bank account<\/mark><\/strong><\/a>, Aadhar, <a href=\"https:\/\/www.cashfree.com\/blog\/pan-verification-with-pan-card-verification-api\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">PAN verification<\/mark><\/strong><\/a> and <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><a href=\"https:\/\/www.cashfree.com\/gst-verification\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=what-are-the-kyc-procedures-for-merchant-onboarding\" target=\"_blank\" rel=\"noreferrer noopener\">GST verification<\/a><\/mark><\/strong> as a tool to help you ascertain the validity of the bank accounts of the end merchants you onboard.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here is a complete merchant onboarding flow chart for a better understanding<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"1389\" data-attachment-id=\"2540\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/image-13\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?fit=2400%2C4328&amp;ssl=1\" data-orig-size=\"2400,4328\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-13\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?fit=568%2C1024&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/01\/image-13.png?resize=770%2C1389&#038;ssl=1\" alt=\"\" class=\"wp-image-2540\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?w=2400&amp;ssl=1 2400w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?resize=166%2C300&amp;ssl=1 166w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?resize=568%2C1024&amp;ssl=1 568w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?resize=768%2C1385&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?resize=852%2C1536&amp;ssl=1 852w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?resize=1136%2C2048&amp;ssl=1 1136w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?w=1540&amp;ssl=1 1540w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-13.png?w=2310&amp;ssl=1 2310w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><figcaption class=\"wp-element-caption\">merchant onboarding flow chart<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">During onboarding merchants, methods of verifying the documents also vary, like the traditional physical check (original seen and verified, in-person verification). Today digital checks like digital document and signature checks (eKYC, DigiLocker, etc.), API-based verification, Digital KYC and Video KYC procedures are being introduced to ease the process and replace earlier physical checks. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For us as PA, relaxations are also being brought into the CDD process, allowing us to rely on the KYC you would have already undergone while opening accounts with the bank you are banking with. In another welcome move by merchant onboarding specialists, the RBI has extended the Central KYC Registry for legal entities, introducing a new mode for digital KYC for businesses via a KYC identifier (previously this was only allowed for individuals).&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-2-verification-against-sanction-and-pep-lists\">Step 2: <strong>Verification against sanction and PEP lists&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Next, our merchant onboarding agents need to verify the names of our clients and their beneficial owners against certain lists, like national and international terrorist lists, or \u2018Politically Exposed Persons\u2019 lists. If a name matches a sanctions list, we also need to report this to the Financial Intelligence Unit of India (\u2018FIU-IND\u2019). Along with these, we verify numerous other lists, like blacklists\/ greylists\/ defaulter lists for companies, directors, etc. issued by banks, the Ministry of Corporate Affairs, the Securities and Exchange Board of India, the Enforcement Directorate, the Office of Foreign Assets Control (U.S.), etc. (for a detailed list please see Appendix II below). These checks aid us in the fight against terrorism and money laundering and also help us define risk levels for a specific client.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-3-onboarding-policies-and-merchant-screening\">Step 3: <strong>Onboarding policies and merchant screening<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">While onboarding merchants, we carry out a background and antecedent check, which takes the form of an initial screening, and for which we define an internal merchant Onboarding Policy. Our aim here is to verify the nature, purpose and bona fides of a prospective client\u2019s business. We conduct a range of checks such as licensing\/registration checks, credit checks, profit and loss statement checks, balance sheet reviews, etc., based on information we seek directly from the prospective client, together with checking publicly available information like the merchant\u2019s websites, product listings, end-customer reviews, social media activity, etc., to ascertain business legitimacy. We are also required under law to ascertain whether you are PCI-DSS compliant.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Pro Tip: <a href=\"https:\/\/www.cashfree.com\/blog\/integrated-payment-system\/\">Integrated Payment System<\/a><\/mark><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-4-merchant-profiling-and-diligence-levels\">Step 4: <strong>Merchant profiling and diligence levels<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After these initial checks, we need to classify merchants as low\/medium\/high risk. Diligence levels and levels of post-onboarding monitoring that we carry out are defined based on this, for example, we need to conduct enhanced due diligence for PEPs but simplified due diligence for self-help groups. Also, we are prohibited from servicing some businesses altogether (tobacco, hacking, gambling, weapons, etc.), while others are considered high-risk (pharmaceuticals, matrimony, gaming, security brokers, jewellery, etc.) requiring increased monitoring and diligence.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-5-ongoing-due-diligence\">Step 5: <strong>Ongoing due diligence<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Post-onboarding merchants, our due diligence checks will continue to keep track of any changes in merchant behaviour that are a cause for concern. For example, a change in merchant website details or an unexpected listing of high-risk products can indicate fraud. These may also call for reviewing merchant risk profiles and due diligence levels.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-6-transaction-monitoring\">Step 6: <strong>Transaction monitoring<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A crucial check post onboarding we do is monitoring merchant transactions, to spot any possible red flags, such as variations in expected transaction characteristics. These can be expected total transaction volume, average order value, chargeback frequency, etc. For example, if a merchant exceeds the maximum permitted <a href=\"https:\/\/www.cashfree.com\/blog\/upi-transaction-limit\/\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">transaction limits<\/mark><\/strong><\/a>, displays an unusual refund pattern, or receives multiple end-customer complaints &#8211; these are causes for concern. In case of any suspicious transactions (say which raise money laundering concerns) and also transactions exceeding certain thresholds (eg. cash transactions above Rs.10L, cross border wire transfers above Rs.5L), they must be reported to FIU-IND by regulated entities.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-7-record-keeping-and-internal-governance-requirements\"><strong>Step 7:<\/strong> <strong>Record-keeping and Internal Governance requirements<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Next, we keep records of all merchant transactions and identity documents, normally for at least 5 years. These need to be provided to authorities upon request, such as for an investigation. There are also numerous internal governance mandates to ensure the effective implementation of requirements, like dedicated internal committees, internal audits, periodic risk assessments and adequate employee training. A Designated Director and a Principal Officer, who have specific reporting obligations under the PMLA, must also be appointed.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"step-8-periodic-updates\">Step 8: <strong>Periodic Updates&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Lastly, we need to update both merchant risk profiles and KYC periodically. As per law, we must update merchant KYC every 10 (low risk), 8 (medium risk) and 2 (high risk) years. The ongoing due diligence checks also aid us with this.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"1454\" data-attachment-id=\"2578\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/image-22\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?fit=1758%2C3320&amp;ssl=1\" data-orig-size=\"1758,3320\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-22\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?fit=542%2C1024&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/01\/image-22.png?resize=770%2C1454&#038;ssl=1\" alt=\"\" class=\"wp-image-2578\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?w=1758&amp;ssl=1 1758w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?resize=159%2C300&amp;ssl=1 159w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?resize=542%2C1024&amp;ssl=1 542w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?resize=768%2C1450&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?resize=813%2C1536&amp;ssl=1 813w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?resize=1084%2C2048&amp;ssl=1 1084w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-22.png?w=1540&amp;ssl=1 1540w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"998\" data-attachment-id=\"2575\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/image-20\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?fit=1760%2C2282&amp;ssl=1\" data-orig-size=\"1760,2282\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-20\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?fit=770%2C998&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/01\/image-20.png?resize=770%2C998&#038;ssl=1\" alt=\"\" class=\"wp-image-2575\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?w=1760&amp;ssl=1 1760w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?resize=231%2C300&amp;ssl=1 231w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?resize=790%2C1024&amp;ssl=1 790w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?resize=768%2C996&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?resize=1185%2C1536&amp;ssl=1 1185w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-20.png?resize=1580%2C2048&amp;ssl=1 1580w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"1018\" data-attachment-id=\"2576\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/what-are-the-kyc-procedures-for-merchant-onboarding\/image-21\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?fit=1778%2C2350&amp;ssl=1\" data-orig-size=\"1778,2350\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"image-21\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?fit=770%2C1017&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/01\/image-21.png?resize=770%2C1018&#038;ssl=1\" alt=\"\" class=\"wp-image-2576\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?w=1778&amp;ssl=1 1778w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?resize=227%2C300&amp;ssl=1 227w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?resize=775%2C1024&amp;ssl=1 775w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?resize=768%2C1015&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?resize=1162%2C1536&amp;ssl=1 1162w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/01\/image-21.png?resize=1550%2C2048&amp;ssl=1 1550w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><span class=\"has-inline-color has-cyan-bluish-gray-color\">List of Abbreviations<\/span><\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>AMFI-<\/strong> Association of Mutual Funds in India<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>AoA-<\/strong> Articles of Association&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>BBPS-<\/strong> Bharat Bill Payment System&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>BIS-<\/strong> Bureau of Indian Standards<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CBI-<\/strong> Central Bureau of Investigation<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CBIC-<\/strong> Central Board of Indirect Taxes and Customs<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CBSE-<\/strong> Central Board of Secondary Education<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CDD-<\/strong> Customer Due Diligence<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CIN-<\/strong> Corporate Identification Number<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CoI<\/strong>&#8211; Certificate of Incorporation<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>CoR-<\/strong> Certificate of Registration<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>DGFT-<\/strong> Directorate General of Foreign Trade<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>DGFT\u2019s HBP<\/strong>&#8211; DGFT\u2019s Handbook of Procedures<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>DIN-<\/strong> Director Identification Number<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>DL-<\/strong> Driving license&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>DLP-<\/strong> Digital Lending Platforms&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>DMT-<\/strong> Domestic Money Transfer<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>EPIC<\/strong>&#8211; Electors Photo Identity Card<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>FCRA- <\/strong>The Foreign Contribution (Regulation) Act<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>FFMC- <\/strong>Full Fledged Money Changers<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>FIU-IND-<\/strong> Financial Intelligence Unit- India&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>GST-<\/strong> Goods and Services Tax<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>GSTIN-<\/strong> Goods and Services Tax Identification Number<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>IATA-<\/strong> International Air Transport Association&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>IATO- <\/strong>Indian Association of Tour Operators&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>IEC-<\/strong> Import Export Code<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>IRDA<\/strong>&#8211; Insurance Regulatory and Development Authority<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>ISIL-<\/strong> Islamic State of Iraq and the Levant&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>IT-<\/strong> Income Tax<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>ITC-HS-<\/strong> Indian Trade Classification based on Harmonized System of Coding<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>KYC-<\/strong> Know your customer&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>LoB-<\/strong> Line of Business<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>LLP-<\/strong> Limited Liability Partnership<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>Master KYC Direction-<\/strong> Master Direction &#8211; Know Your Customer (KYC) Direction, 2016<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>MCA-<\/strong> Ministry of Corporate Affairs&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>MHA-<\/strong> Ministry of Home Affairs<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>MLM Cos<\/strong>&#8211; Multi-Level Marketing Companies&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>MoA-<\/strong> Memorandum of Association&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>MORTH-<\/strong> Ministry of Road Transport and Highway<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NBFC-<\/strong> Non-Banking Financial Company<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NBFC-AFC- <\/strong>NBFC Asset Finance Company&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NBFC-MFI-<\/strong> NBFC Micro Finance Institution<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NBFC-P2P-<\/strong> NBFC Peer-to-Peer Lending Platform&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NCAGR<\/strong>&#8211; North Carolina Department of Agriculture and Consumer Services<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NGO-<\/strong> Non-Governmental Organization<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NPCI-<\/strong> National Payments Corporation of India<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NSDL- <\/strong>National Securities Depository Ltd.<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>NSE-<\/strong> National Stock Exchange&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>OCR-<\/strong> Optical Character Recognition&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>OVD-<\/strong> Officially Valid Document<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>PA-<\/strong> Payment Aggregator<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>PAN-<\/strong> Permanent Account Number<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>PEP-<\/strong> Politically exposed person&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>PMLA-<\/strong> Prevention of Money Laundering Act, 2002<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>PoA- <\/strong>Power of Attorney&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>PPI-<\/strong> Prepaid Payment Instruments&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>RBI- <\/strong>Reserve Bank of India&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>RBI PA Guidelines- <\/strong>Guidelines on Regulation of Payment Aggregators and <a href=\"https:\/\/www.cashfree.com\/blog\/types-of-payment-gateway\/\">Payment Gateways<\/a><\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>RNG-<\/strong> Random Number Generator<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>SaaS-<\/strong> Software-as-a-Service<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>SEBI- <\/strong>Securities Exchange Board of India&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>STPI-<\/strong> Software Technology Parks of India<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>TIN<\/strong>&#8211; Tax Information Network<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>UIDAI-<\/strong> Unique Identification Authority of India<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>UIN-<\/strong> Unique Identification Number&nbsp;<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>UNSCR<\/strong>&#8211; United Nations Security Council Resolution<\/mark><\/li>\n\n\n\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-cyan-bluish-gray-color\"><strong>WMD-<\/strong> Weapons of Mass Destruction&nbsp;<\/mark><\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><a 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&amp;#8211; Common\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2023\/12\/Blog-CTA-banner.jpg?fit=770%2C288&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2023\/12\/Blog-CTA-banner.jpg?resize=770%2C288&#038;ssl=1\" alt=\"\" class=\"wp-image-29656\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2023\/12\/Blog-CTA-banner.jpg?resize=1024%2C383&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2023\/12\/Blog-CTA-banner.jpg?resize=300%2C112&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2023\/12\/Blog-CTA-banner.jpg?resize=768%2C287&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2023\/12\/Blog-CTA-banner.jpg?w=1200&amp;ssl=1 1200w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>This looks at the complete KYC cycle undertaken for merchants from the pre-onboarding to post activation 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