To comply with the new Reserve Bank of India (RBI) guidelines, the merchant onboarding and business verification process require a full update on the:
- Redefinition of merchant onboarding
- Classification
- KYC processes
- Creation of clearer verification rules based on annual business turnover and entity type for new and current merchants
Classify your business
Based on your annual turnover, your business is classified into one of two groups. This classification determines which set of required identity and business checks you need to complete:
- Small merchant: Merchants with an annual business turnover that doesn’t exceed ₹40 lakhs.
- Large merchant: Merchants with an annual business turnover that exceed ₹40 lakhs.
Complete required identity checks
Get started
To accept payments:
- Sign up for Google Pay for Business.
- Complete the required identity checks.
While self-onboarding, you must self-declare your annual turnover and select an option:
- Option 1: "My annual turnover doesn’t exceed ₹20 lakhs."
- Option 2: “My annual turnover is between ₹20 and ₹40 lakhs."
- Option 3: "My annual turnover exceeds ₹40 lakhs."
Tips:
- Options 1 and 2 classify you as a small merchant. Option 3 makes you a large merchant.
- If you’re already an existing merchant, a size may be pre-selected based on your activity but you must confirm it.
Important: In 2026, Aadhaar will be supported under Personal Officially Valid Document (OVD).
Based on your business size and entity type, you’ll need to upload specific documents on the Google Pay for Business app.
- General requirements for small and large merchants:
- Bank account check: To confirm if the bank account is in the name of the entity or proprietor, a Penny-drop verification is performed.
- PAN (Permanent Account Number) check: You must provide your PAN or Form 60. This document is verified with the issuing authority.
- Background and antecedent check: To ensure the merchant isn’t engaged in prohibited activities or holds a malafide intention.
- Sanctions and Politically Exposed Person (PEP) screening: All merchants, proprietors, beneficial owners, and authorized signatories are screened against applicable sanctions and PEP lists.
- Additional requirements for small merchants with an annual turnover of ₹40 lakhs or less:
- PAN card:
- Personal PAN card
- Business PAN card for entity type:
- Partnership Firm or Limited Liability Partnership (LLP)
- Private or Public Limited Company
- Personal OVD: Certified copy of one OVD of the proprietor or the person that holds the Power of Attorney (POA). For example, Voter's ID or Driver’s license.
- Verification method:
- Digitally uploaded through DigiLocker
- Automatically uploaded through Karza integration in the Google Pay for Business app
- Verification method:
- Business OVD: Certified copy of one business document as prescribed for sole proprietor or legal entities. For example:
- GST Certificate
- Udyam Registration
- Shop & Establishment Certificate
- FSSAI License
- Verification method: Automated Karza GST or Udyam from Digilocker in the Google Pay for Business app
- PAN card:
- For large merchants with an annual turnover that exceeds ₹40 lakhs: Full Customer Due Diligence (CDD) is required in line with RBI Master Directions and the general requirements.
- Other key requirements based on business entity type:
- Individuals:
- A personal OVD like a Voter's ID or Driver’s license
- An individual’s PAN
- Sole proprietorship:
- A personal OVD like a Voter's ID or Driver’s license
- A proprietor’s PAN
- Business OVD: One business document like GST, Udyam, Shop and Establishment
- Partnership firm or LLP:
- Registration certificate
- Registered partnership deed
- PAN and OVDs of all Beneficial Owners (BOs) and authorized signatories
- Up to 10 partner names
- Onboarding isn’t allowed for more than 10 partners.
- Private or Public Limited Company:
- Certificate of Incorporation (COI)
- Memorandum and Articles of Association (MAA, AOA)
- Board resolution granting power to transact
- PAN and OVDs of all Beneficial Owners (BOs) and authorized signatories
- More than 2 names of senior management
- Hindu Undivided Family (HUF):
- PAN of HUF
- PAN and OVDs of all Beneficial Owners (BOs) and authorized signatories
- One Business OVD in the name of the HUF
- Individuals:
When your documents are uploaded, a final mandatory check is required before you can start to accept payments. It’ll be completed by a physical visit by a Compliance Agent to check your uploaded documents against the originals or Original Seen & Verified - OSV.
Tip: On January 1, 2026, video verification process for new merchant onboarding will be temporarily suspended. The service is expected to resume later in the year.
Important: Your account will remain in an “Unverified State” until all checks are successfully completed. This includes the mandatory visit.
While your account is unverified, you can:
- Upload or re-upload documents.
- Check your account details.
- Use the Help Center.
Tips:
- You can’t accept any pay-ins or payouts transactions.
- Your physical QR code won’t be shipped.
When everything is approved, your account will be activated.
Use, manage & offboard from the feature
Monitor your business size
To keep your account details current as your business grows, your total yearly sales or Total Payment Volume (TPV) are constantly checked through Google Pay.
Review what happens if you:
- Cross the small merchant limit: If your annual turnover crosses the ₹40 lakhs limit within the year, your account is automatically re-classified as a large merchant.
- Become a large merchant: If your annual turnover crosses the ₹40 lakhs limit, a Breach Trigger occurs:
- Notification: You’re immediately notified through the HUD app and other channels, like SMS or email, that you’re now a large merchant.
- Next-level verification: You’re asked to complete the extra verification requirements for a large merchant.
- Grace period: You have 30 days to submit the additional required documents.
- Suspension: If you fail to submit the required documents and complete the verification within the 30-day grace period, your payment account will be suspended. You can’t accept new transactions until you comply.
Periodic KYC refresh
To maintain accuracy, your documents and identity checks require refreshment from time to time. Re-KYC is performed when internal assessments find it necessary to either refresh existing information or gather additional details.
Merchant Category Code (MCC) validation
The MCC is verified during physical verification of the business.
- An agent verifies your business category.
- The system monitors your transactions. If there’s a big difference between your business activity and what you declared, it might trigger a risk review.
Fix issues with the feature
Important:
- Later in 2026, onboarding support for Trusts, NGOs, and NPOs will be added.
- The video verification process that supports the onboarding of new merchants will be temporarily paused.
This means your verification process is incomplete. You’re not allowed to transact yet.
Solution:
You must ensure that:
- All required documents are uploaded.
- The mandatory physical verification is completed.
If a document is unreadable, expired, or invalid, the verification team will ask you to re-upload.
Solution: In the Google Pay for Business app, you’ll get a notification that asks you to upload the correct and valid document. Your account remains unverified until it’s approved.Your account is suspended if:
- Your account was re-classified as a large merchant because your sales exceeded ₹40 lakhs.
- You didn’t provide the required documents within the 30-day grace period.
Frequently asked questions (FAQs)
What are official Valid Documents (OVDs)An OVD is an identity document officially accepted by the government like:
- Personal OVDs: Voter's ID or Driver’s License
- Business OVDs: GST Certificates or Udyam Registration
During sign-up, the estimated annual sales turnover is self-declared. To track the business's size, Google Pay for Business monitors actual sales.
You can’t accept or send money. Your QR code won’t be shipped until:
- All required identity checks are done.
- Your account is activated.
Periodic KYC refresh for your identity and business information vary based on your business profile's risk:
- High risk: Yearly
- Medium risk: Every 3 years
- Low risk: Every 5 years