What is the legal framework in India for payment gateway? Want to start my own payment gateway.

Building out your own payment gateway is a huge undertaking. Not only do you have to find processing partners, but you also have to deal with legal & regulatory compliance and build out your own AML/KYC programs. As others have mentioned, unless you need something that's not currently out there, a white-labeled solution is probably the best way to go. White-labeled services allow you to customize the payment experience for your customers so it looks like you built your own payment infrastructure (without the headache of actually building it). There are a couple really solid options for white-labeled payments. For credit/debit card payments, check out https://www.braintreepayments.com/ or https://stripe.com/. For payments between US bank accounts, check out https://synapsepay.com/ (It facilitates ACH & Wire payments, plus allows you to hold funds in escrow if you want that 'wallet' function). Hope that helps! Full disclosure: I'm on the SynapsePay team :) Feel free to reach out with questions.

The short answer is unless your wallet app relies on some kind of special gateway functionality you can't find in the market you shouldn't bother. You would need to invest a substantial amount of time and money. Figure $1 million + [could easily be 2+ when you figure legal/compliance] with annual maintenance costs of well over $100k. Significant time spent in regulatory compliance [PCI etc], legal wrangling as well as navigating the complex road of getting certified with major processors. Makes much more sense to partner with a mature gateway--you can likely white label if branding is important. Good luck.

You can tie up with a Payment Gateway Aggregator which can provide you a Merchant Hosted Page. This can only happen when you are PCI Certified. The same payment gateway can provide you with a Wallet as well. However, you might have to have these wallets integrated individually to different websites in case its a closed wallet. On the other hand you can take a White Label Solution from a Payment Gateway and run it as your own but you need to be PCI DSS Level 1 certified for the same. FYI, I manage one of the upcoming Payment Gateway Aggregator Company based at Gurgaon and we specialise in giving White Label Solutions. I will be happy to help you with further details, if needed. Cheers

Since, its a credit card transaction, anywhere in the world first and foremost required is PCI DSS to be meet. ( Even though in India we did come across some exceptions being given by large aggressive banks). Added to this, there not many exceptions expect for the fact that settlement of the transaction has to be done directly/ indirectly by bank itself. Anyhow, in India, getting a gateway from bank is time consuming but you can get it easily from resellers. Added to this, there are no other exceptions.