Terms of Service & Anti-Money Laundering (AML) Policy
Effective Date: October 22, 2026 | Last Updated: October 2026
1. Platform Purpose & Legitimate Business Scope
UtilityPay, operated by UtilityPay Technologies India Pvt. Ltd. ("Company", "we", "our"), provides a specialized business-to-business (B2B) digital intermediary platform that facilitates the processing and automated settlement of commercial utility bills, verified vendor invoices (MCC 7399), commercial office leases (MCC 6513), and equipment rental payments.
The platform facilitates the pass-through disbursement of principal transaction funds directly into the verified bank account of the designated vendor, landlord, or utility service provider via authorized banking channels (IMPS / NEFT). UtilityPay acts strictly as a technology intermediary and convenience fee aggregator (SAC 9971).
2. Strict Anti-Money Laundering (AML) & Prohibited Activities
In accordance with the Prevention of Money Laundering Act, 2002 (PMLA) and Reserve Bank of India (RBI) Digital Payment Regulations, the following transactions and behaviors are strictly and unconditionally prohibited on UtilityPay:
- Prohibition of Self-Transfers & Credit Card Cycling: Users are strictly prohibited from transferring funds to their own bank account, or to any entity/beneficiary sharing the identical Permanent Account Number (PAN), registered mobile contact, or having >80% phonetic/name similarity with the cardholder.
- Prohibition of Personal Cash Advances: The platform cannot be used to convert credit card credit limits into personal cash, uncollateralized loans, or peer-to-peer transfers.
- Fictitious Invoicing: Users must possess valid, verifiable underlying commercial rent agreements, commercial invoices, or utility documentation. Generating fictitious or mock invoices for financial speculation is an offense.
Violation of these prohibitions will result in immediate suspension of account privileges, forfeiture of convenience fees, reporting to banking partners, and filing of Suspicious Transaction Reports (STR) with the Financial Intelligence Unit - India (FIU-IND).
3. Beneficiary Verification & Statutory Cooling-Off Windows
To prevent unauthorized misdirection of funds:
- Penny-Drop Validation: Every beneficiary bank account registered in the Vault is verified via an automated ₹1 bank account inquiry to corroborate name matching and bank IFSC routing.
- 24-Hour Card Cooling Window: The first debit transaction initiated on any newly registered payer account or unverified card is subject to a statutory 24-hour security cooling hold (
IN_COOLING) before automated IMPS disbursement is triggered. - Per-Ticket Cap: A strict cap of ₹25,000.00 applies per transaction to safeguard corporate cardholders against velocity abuse.
4. Platform Fees & Statutory GST (SAC 9971)
UtilityPay charges a convenience fee for technology infrastructure and banking rail routing:
- Instant IMPS Settlement: 3.5% Platform Convenience Fee.
- Standard Next-Day Batch: 2.5% Platform Convenience Fee.
- GST Taxation: Goods & Services Tax (GST) at the statutory rate of 18% is levied strictly on the platform convenience fee, as certified on the computer-generated GST Tax Invoice. No GST is levied on the pass-through principal utility or rental amount.
5. Governing Law & Jurisdiction
These Terms shall be governed and construed in accordance with the laws of India. Any legal disputes arising out of the services shall be subject to the exclusive jurisdiction of the competent courts in Bengaluru, Karnataka, India.