1. INTRODUCTION 

1. PayU Payments Private Limited (“PayU”) is a licensed payment aggregator under the Reserve Bank of India’s (“RBI”) Master Direction on Regulation of Payment Aggregator (PA). PayU acts in the capacity of a PA, where it collects money from resident buyers/ payers and settles the same to the offshore merchant/seller, subject to applicable deductions of fees and charges, for an underlying online payment transaction (“PayU Services”) undertaken towards the purchase of goods/services (“Product”) sold by the said offshore merchant/seller (“Foreign Merchant”).  

2. These Terms and Conditions (“PayU LRS T&Cs” or “T&Cs”) govern the processing of online cross border payment transactions through PayU Services requiring outward remittance to Foreign Merchants (through authorized dealer banks) for the purchase of Product(s) under the ambit of the RBI’s Master Direction – Liberalised Remittance Scheme (“LRS“) as per the Foreign Exchange Management Act, 1999, read with its applicable rules and regulations (“FEMA”) (each such transaction, a “Transaction”).  

3. These T&Cs should be read together with other applicable PayU terms and conditions, PayU’s Grievance Policy, PayU’s Privacy Policy, any terms / conditions imposed by the authorized dealer banks, regulatory / statutory authorities and all applicable laws and regulations. These terms, conditions and policies are incorporated herein by way of reference and form an integral part of these T&Cs. PayU reserves the sole right to change, modify or add to these T&Cs, at any time without any prior notice or intimation to you and all such changes, modifications or additions, as the case may be, shall be effective immediately upon publication. 

4. The terms “User“, “you“, “You“, “your“, “Your“, and “yourself” as used throughout these PayU LRS T&Cs refers to the resident individual buyer/customer/payer who is undertaking / carrying out or attempting to undertake / carry out an online payment Transaction, through the PayU Services. 

5. By proceeding with the Transaction, you acknowledge that you have read and understood these T&Cs, and agree to be legally bound by these T&Cs. These PayU LRS T&Cs establish the framework for your obligations, declarations, and responsibilities, while defining PayU’s role as a mere intermediary in facilitating the payment for your Transaction through authorized dealer banks. Your acceptance of these T&Cs constitutes a binding agreement and confirms your compliance with all regulatory requirements under the FEMA, Income Tax Act, 1961, and other applicable law. 

2. PERSONAL DECLARATIONS 

1. Age and Legal Capacity: You hereby declare and confirm that you are at least eighteen (18) years of age, constituting legal majority under the laws of India. You possess full legal capacity and competence to agree to these PayU LRS T&Cs and undertake the proposed Transaction. You confirm that you are not under any legal disability, mental incapacity, or other impediment that would restrict your ability to make binding contractual commitments. You provide your free, informed, and voluntary consent to these PayU LRS T&Cs without any coercion, undue influence, or misrepresentation. 

2. Residency and Transaction Capacity: You hereby declare and confirm that you are a resident of India as defined under FEMA, read with the applicable rules, regulations, notifications, circulars, guidelines, and directions thereunder.  

3. You hereby declare that you are an individual undertaking the Transaction exclusively in your personal individual capacity for your own personal use and benefit. This Transaction is not being conducted on behalf of any third party, entity, organization, or in any representative, fiduciary, or agency capacity. The funds being utilized in this proposed Transaction are legitimately owned by you and are not held in trust or on behalf of any other person or entity. 

4. Accuracy and Completeness of Information: You warrant and represent that all information, details, declarations, and documentation provided by you in connection with this proposed Transaction are true, accurate, complete, and current. You acknowledge that any false, misleading, unauthorized, or incomplete information may result in transaction rejection/failure, account suspension, legal consequences, and potential violation of applicable laws. 

5. PAN and Identity Verification: You hereby declare and confirm that the Permanent Account Number (“PAN”) and all other identity documents and details provided by you are in your (the buyer’s/payer’s) name. You are not misusing, or misrepresenting anyone else’s PAN. You understand that the use of another person’s PAN constitutes identity fraud and is an offense under Indian law that may attract civil and criminal penalties. You provide consent for PayU to collect and process your date of birth information as specified in your PAN. 

6. Acknowledgment and Compliance: You acknowledge that you have thoroughly read, understood, and agree to be bound by these PayU LRS T&Cs in their entirety. You confirm that all representations made herein are true and correct, and you understand that PayU and other parties (including banking partners and service providers) will rely on these declarations in processing your Transaction. You solemnly affirm that if any information provided by you is found to be false, inaccurate, or misleading, you will immediately discontinue the Transaction and will not proceed further. You accept full responsibility for the consequences of any misrepresentation or breach of these declarations. 

3. FEMA DECLARATIONS AND COMPLIANCE 

1. FEMA Compliance: You hereby declare and confirm that the proposed Transaction is not a capital account transaction as defined under FEMA. You acknowledge that this Transaction does not involve any prohibited current account transactions under FEMA.  

2. Liberalized Remittance Scheme Compliance and Limits: You hereby declare and confirm that the total aggregate amount of foreign exchange purchased from or remitted through any and all authorized dealers, money changers, and other permissible channels /modes in India during the current financial year (April to March), including the present Transaction, is within the overall annual limit prescribed under RBI’s LRS. You acknowledge that these limits, sub-limits, and specific provisions are subject to periodic revision by the Reserve Bank of India, and you undertake to ensure that you remain fully informed and updated about the current applicable limits, sub-limits, conditions, and any changes or modifications thereto. You confirm that you have independently verified the current LRS limits and your eligibility to undertake this Transaction within the prescribed framework/law. You understand that notwithstanding your declarations, the authorized dealer bank will independently verify and check whether the statutory LRS threshold has been breached against your PAN during the transaction processing, and if such threshold breach is detected, the Transaction will be rejected and/or will fail to process.  

3. Source of Funds and Purpose Declaration: You hereby declare and confirm that the funds being utilized for this Transaction are being sourced legitimately from your own lawful resources. You warrant that these funds belong exclusively to you, are free from any encumbrance or third-party claims, and have been acquired through legitimate means in compliance with all applicable laws. You confirm that the purpose code captured in the Declaration Form is correct and aligns with the actual purpose for which the Transaction is being undertaken. 

4. Jurisdictional and FATF Compliance: You hereby declare and confirm that the payment/remittance arising from this Transaction shall be used only in jurisdictions and with entities that are compliant with the Financial Action Task Force (FATF) recommendations and standards. You confirm that the destination country is not identified by FATF as a non-cooperative country or territory as listed on the official FATF website (www.fatf-gafi.org) or as separately notified by the RBI. You undertake that the remittance / payment will not be made, directly or indirectly, to any individuals, entities, or organizations that have been identified by the RBI, Government of India, or international bodies as posing significant risk of committing acts of terrorism, money laundering, or other financial crimes. 

5. Prohibited Activities: You hereby declare and confirm that this Transaction does not involve, facilitate, or is intended for the purpose of any contravention, evasion, or circumvention of the provisions of FEMA. You confirm that this remittance is not designed to evade or violate any other applicable law, rule, regulation, notification, direction, or order issued by the Government of India, RBI, or any other competent government, judicial, administrative, or quasi-judicial authority. You confirm that this remittance does not involve any activities that are otherwise not permissible under FEMA, including but not limited to transactions with residents of countries or territories that are subject to sanctions, embargoed regions, hawala transactions, unofficial foreign exchange dealings, illegal trade practices, invoice manipulation, or other fraudulent commercial activities. You confirm that you have not been and are currently not subject to any investigation, prosecution, or penalty under FEMA or any other financial legislation, and You are not disqualified from undertaking foreign exchange transactions under any applicable law or regulation. 

6. Compliance with Laws: You undertake to comply with all applicable laws, regulations, and guidelines governing foreign exchange transactions in India, including but not limited to FEMA, Income Tax Act, 1961, Prevention of Money Laundering Act, 2002 (PMLA), and any other relevant legislation. You acknowledge that You are responsible for ensuring compliance with the foreign exchange and tax regulations of the destination country and undertake to fulfill all such obligations.  

7. PayU’s Intermediary Role and Transaction Facilitation: You understand and acknowledge that PayU acts solely as a payment aggregator and intermediary in facilitating the processing of the payment for the Transaction and does not function as an authorized dealer under FEMA. You understand and agree that PayU’s role is limited to processing the payment, coordinating with the designated authorized dealer bank for the actual foreign exchange transaction, managing the transfer of funds (after deduction of applicable fees and charges) to the authorized dealer bank for onward settlement to the Foreign Merchant. You acknowledge that the authorized dealer bank remains the principal entity responsible for FEMA compliance. You understand that PayU does not provide any foreign exchange advisory services, FEMA compliance guidance, or regulatory opinions, and that you remain solely responsible for ensuring that your Transaction complies with all applicable FEMA provisions and RBI guidelines. 

4. TAX COLLECTION AT SOURCE (TCS) 

1. TCS Obligation: You acknowledge and understand that under applicable laws including Indian tax laws, any authorized dealer who receives an amount for remittance under the RBI’s LRS is legally obligated to collect applicable Tax Collected at Source (TCS) based on the specific category of the transaction and/or the value of the remittance. You agree and confirm that TCS shall be collected for the Transaction. You understand that this is a statutory requirement and not discretionary. 

2. TCS Calculation: You understand that TCS will be calculated based on different rates applied according to the transaction category and amount involved, as prescribed under applicable Indian tax laws. 

1. TCS Calculation Based on Thresholds: For certain transaction categories the TCS rate and calculation is dependent on the aggregate amount of (A) your current proposed Transaction and (B) all amounts previously remitted by you under RBI’s LRS through all authorized dealers, payment aggregators, money changers, and other permissible channels (“Previous LRS Remittances“) during the current financial year (April 1 to March 31).  
    
     
    
   You understand that this declaration is critical for determining the applicable TCS rate and confirm that you have accurately assessed your aggregate LRS utilization for the current financial year. This information is within your exclusive knowledge and possession, as PayU and the concerned authorized dealer bank do not have access to consolidated data regarding your Previous LRS Remittances. It is your sole responsibility to accurately assess your Previous LRS Remittances and provide correct declarations. You acknowledge that any misrepresentation or inaccurate declarations may result in incorrect TCS calculation, and you agree to bear all responsibility and potential legal consequences in this regard. 
    
     

2. TCS Calculation Irrespective of Thresholds: For certain transaction categories the TCS rate is fixed, irrespective of the current proposed Transaction amount or Previous LRS Remittances. Accordingly, the applicable TCS rate will be applied and collected at the time of payment for the Transaction. 
    
     

3. PayU’s Intermediary Role and Consent for Collection: You understand and acknowledge that PayU acts solely as an intermediary payment aggregator in facilitating this Transaction (including collection of the TCS amount) and does not assume the role and responsibilities of an authorized dealer under FEMA and other extant Indian tax laws. You understand and acknowledge that PayU currently does not support payment aggregation services for ‘overseas tour program packages’ under Indian tax laws where the seller of such packages is liable to collect and deposit TCS. You hereby provide your explicit and informed consent for the payment of TCS at applicable rates to PayU in its capacity as a payment aggregator for subsequent transfer to the concerned authorized dealer bank. You understand that the responsibility for actual deposit of the collected TCS with the income tax authorities rests with the authorized dealer bank, while the responsibility for proper tax filing and compliance rests with You as the buyer/remitter/payer. 

4. PAN Status Declaration and TCS Implications: You understand that furnishing of valid PAN or confirmation with respect to the operative status of your PAN directly impacts TCS collection and the applicable TCS rate for the Transaction. You acknowledge that if your PAN is ‘inoperative’ (not linked to Aadhar) or not in accordance with extant tax laws, TCS will be collected, at such higher rates as prescribed, on the Transaction amount, regardless of: (a) lower TCS rates which may otherwise have been applicable to the transaction category, (b) aggregate of current proposed Transaction and Previous LRS Remittances not breaching any applicable thresholds, etc. You understand that neither PayU nor the authorized dealer bank will independently verify or validate the operative status of your PAN, and this declaration is based entirely on your knowledge and representation. You accept full responsibility for the accuracy of this declaration and understand that any misrepresentation regarding your PAN status may result in incorrect tax collection, potential penalties, and legal consequences under applicable tax laws. 

5. Refunds, Chargebacks, etc.: You explicitly acknowledge and agree that any refunds, chargebacks, or transaction cancellations may not result in restoration of funds, credit limits or LRS limits as these are dependent on authorized dealer banks and other intermediaries in the payment system infrastructure’s internal settlement cycles. You acknowledge that PayU and authorized dealer banks may not have control over the timing or efficiency of these processes. During the period between receiving a refund and the restoration of your funds / limits, you may be prevented from undertaking additional transactions. You accept full responsibility for managing your fund / limit utilization considering these potential delays. 

6. TCS Recovery Limitations: You explicitly acknowledge and agree that once the collected TCS has been deposited by the authorized dealer bank with the income tax authorities, such deposited amount cannot be refunded to You by either PayU or the authorized dealer bank, even in cases of transaction refunds, chargebacks, non-delivery of services, cancellation of underlying transactions, or transaction processing errors. You understand that in such circumstances, you must pursue recovery of the TCS amount directly from the income tax authorities through appropriate channels including tax return filing or refund applications. You further acknowledge that TCS refunds may only be possible in limited circumstances where the authorized dealer bank has not yet deposited the collected TCS with the tax authorities and the refund request relates to genuine transaction rejection, merchant refund, or chargeback scenarios that occur within the authorized dealer’s deposit cycle. 

5. POST-TRANSACTION OBLIGATIONS AND COMPLIANCE 

1. Information and Documentation Requirements: You agree and undertake to provide all such information, documents, clarifications, and supporting evidence as may be required by PayU, the authorized dealer bank, or any statutory or regulatory authority to satisfy themselves regarding the purpose of remittance, legitimacy, compliance, and accuracy of this transaction and the declarations made herein. You acknowledge that such requirements may arise at any time during or after the transaction processing, and you commit to respond promptly and completely to all such requests. You understand that failure to provide satisfactory information or documentation may result in transaction suspension, cancellation, or reporting to appropriate authorities. 

2. Remittance Recall and Post-Facto Verification: You agree and acknowledge that all or part of the remittance amount in relation to this transaction may be recalled, reversed, or frozen if deemed necessary by PayU, the authorized dealer bank, or any statutory, regulatory, or law enforcement authority upon conducting post-facto regulatory, legal, or compliance checks. You understand that such recall may be initiated based on suspicious transaction patterns, regulatory inquiries, compliance violations, or any other legitimate concerns regarding the transaction’s adherence to applicable laws and regulations. 

3. Transaction Cancellation and Rejection Scenarios: You agree and acknowledge that the Transaction may be reviewed, rejected, suspended, cancelled, or terminated under various circumstances including but not limited to: (i) breach or failure to comply with any requirements, declarations, or undertakings contained herein; (ii) provision of false, incomplete, or misleading information or documentation; (iii) exceeding prescribed limits under the Liberalized Remittance Scheme or other applicable regulations; (iv) detection of suspicious transaction patterns or fraudulent activity; (v) failure to satisfy Know Your Customer or Anti-Money Laundering requirements; (vi) instructions or directions from regulatory authorities; (vii) technical or operational issues beyond reasonable control of PayU, authorized dealer, or other intermediaries and partners; or (viii) violation of any applicable law, regulation, or guideline. 

6. DATA COLLECTION, PROCESSING AND SHARING DECLARATION  

1. Authority and Purpose for Data Collection: You hereby acknowledge and grant to PayU the explicit authority to collect, store, process, and use your personal data, including your name, address, contact details, PAN, etc. for any purpose related to processing the Transaction. You understand that PayU is collecting your PAN and other personal details as per the specific instructions and requirements of the authorized dealer bank to facilitate payment processing and ensure compliance with applicable laws, regulations, and Know Your Customer (KYC) norms. 

2. Scope of Data Collection and Processing: You consent to PayU collecting, storing, and processing various categories of your personal data including but not limited to your PAN details, contact information, transaction history, identity verification documents, and any other data necessary for transaction processing and regulatory compliance. You acknowledge that such data collection, storage, use, and transfer may be conducted /carried out by PayU, its affiliates, subsidiaries, or business partners (including banking partners) in accordance with PayU’s Privacy Policy and applicable data protection laws. Your Transaction records and supporting documents may be retained by PayU, authorized dealer banks, their authorized representatives and service providers, for ten (10) years or more as required by applicable laws. 

3. Data Sharing and Third-Party Access: You specifically authorize PayU to share your personal data with: (i) banking partners including authorized dealer banks, acquiring banks, and other financial institutions involved in transaction processing; (ii) merchants, service providers, or business partners facilitating the underlying transaction; (iii) third-party service providers and vendors engaged for PAN verification, identity authentication, fraud prevention, and other compliance-related services; and (iv) regulatory authorities, government agencies, or any other entities as required under or in accordance with applicable law.  

4. Law Enforcement and Regulatory Compliance: You acknowledge and consent that the transaction details may be reported to government authorities including RBI for compliance verification or regulatory requirements. You further acknowledge and consent that your personal data may be shared with law enforcement agencies, regulatory authorities, tax departments, or other government bodies for any lawful purpose, investigation, compliance verification, or as required under applicable laws and regulations, without requiring your separate consent for each such disclosure. You understand that such sharing is necessary for regulatory compliance and may occur without prior notification to you. 

5. Limitation of Liability: You acknowledge that You are providing your personal data voluntarily and at your own risk. You understand and accept that no party involved in processing the payment for this transaction, including PayU, its affiliates, business partners, or service providers, shall be held responsible for any consequences arising from data usage, unauthorized access, data breaches, or any other data-related incidents beyond their reasonable control. You acknowledge that any such risks shall be borne entirely at your sole cost and responsibility, and you waive any claims against these parties for data-related issues except to the extent required under mandatory provisions of applicable law. 

7. MISCELLANEOUS 

1. Force Majeure and Service Interruptions: PayU shall not be liable for any failure, delay, interruption, or inability to perform its obligations under these PayU LRS T&Cs due to circumstances beyond its reasonable control, including but not limited to: (i) acts of God, natural disasters, earthquakes, floods, fires, storms, or other environmental catastrophes; (ii) war, terrorism, civil unrest, strikes, lockouts, or labor disputes; (iii) government actions, regulatory changes, sanctions, or compliance requirements imposed by any authority; (iv) technical failures, cyber attacks, system outages, internet disruptions, or telecommunications failures; (v) banking system failures, authorized dealer bank service interruptions; (vi) third-party service provider failures or non-performance; or (vii) any other unforeseen circumstances or events that make performance impracticable or impossible. During such events, PayU will use reasonable commercial efforts to minimize service disruption and restore normal operations as promptly as possible. Users acknowledge that transaction processing may be delayed, suspended, or canceled during force majeure events without liability to PayU, and any applicable refunds will be processed once normal operations resume. 

2. Service Availability and Technical Disclaimers: PayU makes no warranties or representations regarding the uninterrupted availability, accuracy, reliability, or performance of its platform, technology infrastructure, or related services. Users acknowledge that the service may be subject to periodic maintenance, updates, technical difficulties, or temporary unavailability, and PayU shall not be liable for any inconvenience, loss, or damages resulting from such interruptions. PayU disclaims all warranties, whether express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, non-infringement, and those arising from course of dealing or usage of trade. Users are responsible for ensuring their systems meet technical requirements for accessing PayU’s services and for maintaining appropriate backup arrangements for critical transactions. The complete processing of Transactions will be as per timelines specified by authorized dealer banks and other intermediaries in the payment processing system and this may not be in PayU’s control. 

3. Indemnity: You agree to indemnify, defend, and hold harmless PayU, its affiliates, subsidiaries, officers, directors, employees, agents, business partners, authorized dealer banks, and service providers (collectively, “Indemnified Parties“) from and against any and all claims, demands, actions, suits, proceedings, losses, liabilities, damages, costs, and expenses (including reasonable attorneys’ fees and court costs) arising out of or in connection with: (i) your breach of these T&Cs or any representations made herein; (ii) your violation of any applicable laws or regulations; (iii) any false, inaccurate, or misleading information, documentation or declarations provided by you; (iv) any claims by third parties regarding the Transaction including but not limited to – (a) your misuse of another person’s PAN, identity documents, or personal information; or (b) disputes regarding delivery, quality, or performance of Products; (v) any regulatory action, penalty, investigation, or proceeding initiated on account of you or arising from your conduct; and (vi) your unauthorized, illegal, or fraudulent use of PayU Services. Your indemnification obligations hereunder shall survive the date of completion or termination of the Transaction. 

4. Limitation of Liability: PayU acts solely as a payment aggregator and technology intermediary facilitating processing of the payment Transactions. PayU expressly disclaims all liability for: (i) any actions, decisions, or compliance failures of authorized dealer banks, business partner or third-party service providers; (ii) regulatory compliance, FEMA adherence, or foreign exchange regulatory violations, which remain the sole responsibility of Users and authorized dealers; (iii) accuracy, completeness, or adequacy of user declarations, documentation, or information provided; (iv) rejection, cancellation, or reversal of transactions by authorized dealers, regulatory authorities, or destination country institutions; (v) changes in foreign exchange rates, TCS rates, regulatory limits, or applicable laws affecting transactions; (vi) delays in transaction processing, fund transfers, or regulatory approvals beyond PayU’s direct control; and (vii) any consequential, indirect, incidental, punitive, or special damages arising from transaction processing or service usage. This limitation applies regardless of whether claims are based in contract, tort, negligence, strict liability, or any other legal theory, except where such limitation is prohibited by mandatory provisions of applicable law. 

5. Governing Law: These T&Cs shall be governed by and construed in accordance with the laws of India. Any disputes arising out of or in connection with these T&Cs shall be subject to the exclusive jurisdiction of courts in Delhi, India.