SPECIAL TERMS AND CONDITIONS FOR 

LARAWARE PRIVATE LIMITED
Effective Date: July 8, 2025

1. ACCEPTANCE OF TERMS

By accessing or using LARAWARE’s fintech services platform (https://api.laraware.com), you agree to be bound by these Terms and Conditions. If you do not agree to these terms, please do not use our services.

2. ABOUT LARAWARE

Company Details:

• Name: LARAWARE PRIVATE LIMITED
• Address: Narjoga Tower – D-262, Vibhuti Khand, Gomti Nagar, Lucknow – 226010
• Contact: legalteam@laraware.com | +91 9403891813

LARAWARE provides technology-enabled financial services platform with proprietary technology, systems, and processes for facilitating various financial services.

3. SERVICES OFFERED

3.1 Core Services

• Domestic Money Transfer (DMT) – IMPS, NEFT, RTGS
• Aadhaar Enabled Payment System (AEPS)
• Bharat Bill Payment System (BBPS)
• Prepaid Recharge Services
• UPI Collection & Payout Services
• Payment Gateway Services
• Virtual Account Services
• Wallet Services
• Micro-ATM Services

3.2 Service Availability

• Platform Uptime: 99.9% target
• API Availability: 99.5% target
• 24×7 support for critical issues

4. ELIGIBILITY & REGISTRATION

4.1 Partner Requirements

• Valid business registration in India
• Compliance with all applicable laws
• Required licenses and approvals
• KYC/AML compliance
• Minimum security deposit: INR 50,000

4.2 Prohibited Businesses

Partners cannot engage in:

• Money laundering or terrorist financing
• Adult content and services
• Illegal gambling operations
• Cryptocurrency trading (without authorization)
• Any business prohibited by RBI/NPCI guidelines

5. COMPLIANCE & REGULATORY

5.1 Legal Compliance

All partners must comply with:

• Prevention of Money Laundering Act, 2002
• Information Technology Act, 2000
• Payment and Settlement Systems Act
• RBI master directions
• NPCI operating guidelines
• GST and Income Tax regulations

5.2 AML/CFT Requirements

• Written AML policy implementation
• Customer due diligence procedures
• Suspicious Transaction Reporting (STR) within 7 days
• Record keeping for 10 years
• Staff training programs

6. DATA PROTECTION & PRIVACY

6.1 Data Security

• ISO 27001 or equivalent compliance required
• AES-256 encryption for data at rest
• TLS 1.2+ for data in transit
• No storage of Aadhaar or biometric data

6.2 Privacy Obligations

• Privacy by design implementation
• Customer consent management
• Data minimization practices
• Breach notification within 24 hours
• Cross-border data transfer restrictions

7. FINANCIAL TERMS

7.1 Fees & Charges

• Service fees as per agreed commercial terms
• Chargeback fee: INR 500 + GST per case
• All fees exclusive of applicable taxes (18% GST)

7.2 Settlement Terms

• Standard Settlement: T+1 Business Day
• Same Day Settlement: T+0 (by 6 PM)
• Instant Settlement: Within 30 minutes
• Weekly Settlement: Every Monday

7.3 Penalties

• SLA Breach: As per SLA matrix
• Compliance Violation: INR 25,000 per incident
• Fraud/Misconduct: 200% of transaction amount
• Data Breach: INR 1,00,000 + actual damages

8. RISK MANAGEMENT

7. RISK MANAGEMENT & TRANSACTION MONITORING

7.1 24/7 Risk Monitoring System

• Dedicated Risk Team: LARAWARE maintains a specialized risk management team that monitors all transactions 24/7
• Real-time Transaction Surveillance: Every transaction is automatically screened for suspicious patterns
• Advanced AI/ML Detection: Machine learning algorithms detect unusual transaction behaviors
• Manual Review Process: High-risk transactions undergo additional manual verification
• Multi-layered Security: Multiple checkpoints ensure comprehensive risk assessment

7.2 Suspicious Activity Detection

Our risk monitoring system flags transactions for:

• Unusual Transaction Patterns: Abnormal frequency, amounts, or timing
• Velocity Violations: Exceeding normal transaction limits in short periods
• Geographic Anomalies: Transactions from unexpected locations
• Beneficiary Red Flags: Payments to suspicious accounts or entities
• Cross-referencing: Matching against known fraud databases and blacklists

7.3 Zero Tolerance Policy for Illegal Activities

⚠️ STRICT ENFORCEMENT: LARAWARE has absolute zero tolerance for any illegal activities including but not limited to:

7.3.1 Prohibited Activities

• Gambling & Betting: Online/offline gambling, sports betting, fantasy sports
• Narcotics Trade: Drug trafficking, illegal pharmaceutical sales
• Money Laundering: Structuring, layering, or integration of illicit funds
• Terrorist Financing: Any funding related to terrorist activities
• Fraud & Scams: Ponzi schemes, pyramid schemes, phishing scams
• Adult Content: Pornography, escort services, adult entertainment
• Weapons Trading: Arms, ammunition, explosives
• Counterfeit Goods: Fake products, pirated software, trademark violations
• Unauthorized Financial Services: Unlicensed lending, chit funds, hawala

7.3.2 Immediate Account Termination Protocol

Upon detection of ANY illegal activity:

1. INSTANT SUSPENSION: Account access terminated within minutes of detection
2. FUND FREEZE: All funds immediately frozen pending investigation
3. TRANSACTION HALT: No further transactions allowed
4. LEGAL NOTIFICATION: Law enforcement agencies notified within 2 hours
5. REGULATORY REPORTING: STR filed with FIU-IND within 24 hours

7.4 Investigation & Fund Recovery Process

7.4.1 Investigation Timeline

• Immediate Response: Risk team investigates within 1 hour of detection
• Preliminary Report: Initial findings within 24 hours
• Detailed Investigation: Complete analysis within 7 days
• Legal Review: Compliance and legal team assessment

7.4.2 Fund Status During Investigation

⚠️ CRITICAL WARNING:

• ALL FUNDS REMAIN FROZEN until complete investigation concludes
• NO PARTIAL RELEASES during investigation period
• NO EXCEPTIONS regardless of amount or customer pressure
• BURDEN OF PROOF entirely on the partner to prove legitimacy

7.4.3 Legitimacy Verification Requirements

To recover frozen funds, partners must provide:

• Complete Transaction Documentation: Source of all funds with bank statements
• Business License Verification: Valid licenses for all business activities
• Customer Identity Proof: KYC documents for all involved customers
• Purpose Documentation: Legitimate business reasons for all transactions
• Legal Clearance: No-objection certificates from relevant authorities
• Affidavit: Sworn statement of no illegal activity involvement
• Third-party Audit: Independent verification of business operations

7.5 Permanent Fund Forfeiture Conditions

7.5.1 Automatic Forfeiture Triggers

FUNDS WILL BE PERMANENTLY FORFEITED in case of:

• Proven Illegal Activity: Any confirmed involvement in prohibited activities
• Failure to Provide Evidence: Unable to prove legitimacy within 90 days
• False Documentation: Submission of fake or fraudulent documents
• Repeated Violations: Second instance of suspicious activity
• Criminal Charges: Any criminal case filed against the partner
• Regulatory Action: Any regulatory authority directing forfeiture

7.5.2 Forfeiture Process

1. Final Notice: 30-day notice before permanent forfeiture
2. Last Opportunity: Final chance to provide legitimate proof
3. Legal Review: Independent legal assessment
4. Authority Coordination: Consultation with law enforcement
5. Permanent Forfeiture: Funds transferred to appropriate authorities
6. Account Blacklisting: Permanent ban from LARAWARE platform

7.6 Risk Scoring & Red Flag System

7.6.1 Automated Risk Scoring

• Transaction Risk Score: 0-100 scale for every transaction
• Partner Risk Rating: Overall risk assessment updated daily
• Customer Risk Profile: Individual customer risk evaluation
• Geographic Risk: Location-based risk assessment

7.6.2 Red Flag Indicators

Immediate Investigation Triggers:

• Multiple transactions just below reporting thresholds
• Transactions during unusual hours (midnight to 6 AM)
• Payments to known high-risk entities or locations
• Sudden increase in transaction volume/value
• Customers refusing to provide additional documentation
• Use of multiple payment methods for single purpose
• Transactions with no clear business purpose

7.7 Compliance & Reporting

7.7.1 Regulatory Reporting

• Suspicious Transaction Reports (STR): Filed within 7 days
• Cash Transaction Reports (CTR): For transactions above ₹10 lakhs
• Law Enforcement Cooperation: Complete transparency with authorities
• International Cooperation: Sharing information with global agencies

7.7.2 Internal Reporting

• Daily Risk Reports: To senior management
• Weekly Trend Analysis: Pattern identification
• Monthly Compliance Review: Complete assessment
• Quarterly Board Reporting: Risk committee updates

7.8 Partner Protection Measures

7.8.1 Legitimate Business Protection

• Clear Guidelines: Detailed do’s and don’ts provided
• Training Programs: Regular compliance training sessions
• Advisory Support: Guidance on suspicious transaction identification
• Quick Resolution: Fast clearance for legitimate activities

7.8.2 Appeal Process

• Primary Review: Risk team re-evaluation within 48 hours
• Secondary Review: Senior management review within 7 days
• External Audit: Independent third-party assessment if required
• Legal Recourse: Right to legal appeal after internal process
• 100% chargeback liability on partners
• 48-hour response requirement
• Automatic deduction rights
• Excessive chargeback penalties:

  • 1%: Warning

  • 2%: Penalty

  • 3%: Suspension

  • 5%: Termination

9. TECHNICAL REQUIREMENTS

9.1 API Specifications

• OAuth 2.0 with JWT tokens
• TLS 1.2+ encryption mandatory
• Rate limits: 300 TPS for transactions
• JSON format with UTF-8 encoding

9.2 Integration Requirements

• Minimum server: 4 cores, 8GB RAM, 100GB SSD
• WAF implementation required
• SSL certificate (EV preferred)
• Regular security patches

10. INTELLECTUAL PROPERTY

10.1 LARAWARE IP

• Platform, APIs, and documentation
• Trademarks and logos
• Business processes and analytics
• Limited license granted for authorized use only

10.2 Restrictions

• No reverse engineering
• No derivative works creation
• No proprietary notice removal
• No unauthorized mark usage

11. LIABILITY & INDEMNIFICATION

11.1 Partner Indemnity

Partners indemnify LARAWARE for:

• Breach of agreement or laws
• Agent acts or omissions
• Customer claims and fraud
• Data breaches and regulatory actions

11.2 Limitation of Liability

• LARAWARE liability limited to fees paid in preceding 12 months
• No liability for indirect or consequential damages
• Exclusions don’t apply to willful misconduct or gross negligence

12. TERMINATION

12.1 Term

• Initial term: 3 years
• Auto-renewal for 1-year terms
• 90 days notice for non-renewal

12.2 Immediate Termination Grounds

• Fraud or financial crime
• Regulatory violations
• Excessive chargebacks
• License cancellation
• Material breach

12.3 Post-Termination

• 180 days cooling period
• Security deposit refund after clearances
• Confidentiality obligations continue
• Data deletion within 30 days

13. DISPUTE RESOLUTION

13.1 Escalation Process

1. Business managers: 7 days
2. Senior management: 15 days
3. CEOs: 30 days

13.2 Arbitration

• Sole arbitrator under Arbitration Act, 1996
• Seat: Lucknow, Uttar Pradesh
• Language: English
• Governing law: Indian law

14. FUND PROTECTION & ACCOUNT FREEZE POLICY

14.1 Fund Legitimacy Policy

• All funds processed through LARAWARE platform are legitimate and verified
• Source of funds must be declared and verified for all transactions
• Any suspicious transactions are immediately flagged and reported
• Funds are held in secure escrow accounts with authorized banks
• Regular reconciliation and audit of all fund movements

14.2 Account Freeze Contingency Policy

IMPORTANT NOTICE: In case of LARAWARE account freeze by regulatory authorities:

14.2.1 Immediate Impact

• All partner settlements will be temporarily suspended
• New transactions may be restricted based on regulatory directions
• Existing funds in transit will remain frozen until account reactivation
• No withdrawals or settlements possible during freeze period

14.2.2 Fund Security Measures

• Customer funds are held in separate nodal/escrow accounts
• Funds are protected under banking regulations
• Regular backup of all transaction records maintained
• Insurance coverage for operational risks

14.2.3 Communication Protocol

• Partners will be notified within 2 hours of any account freeze
• Daily updates on resolution progress will be provided
• Dedicated helpline for freeze-related queries: +91 9403891813
• Email updates to all registered partners

14.2.4 Resolution Timeline

• LARAWARE will work actively with authorities for quick resolution
• Legal team will pursue all available remedies
• Partners will be updated on expected resolution timelines
• Priority will be given to fund release procedures

14.2.5 Fund Release Process

• Funds will be released in order of transaction date
• Settlement will resume within 24 hours of account reactivation
• Interest compensation may be provided for extended freeze periods
• Detailed reconciliation report will be shared post-resolution

14.3 Risk Mitigation Measures

• Multiple banking relationships to avoid single point of failure
• Regular compliance audits to prevent regulatory issues
• Proactive communication with regulatory authorities
• Contingency plans for operational continuity

14.4 Customer Fund Protection

• Segregation of customer funds from operational funds
• Daily reconciliation of all customer balances
• Bank-level protection for all deposited amounts
• Insurance coverage for customer fund protection

14.5 Partner Responsibilities During Freeze

• Continue providing customer support for pending transactions
• Maintain transaction records and documentation
• Cooperate with regulatory investigations if required
• Avoid panic communication to end customers

14.6 Force Majeure & Regulatory Actions

• Account freeze by authorities considered as Force Majeure event
• No penalties applicable during genuine regulatory freeze periods
• Service level agreements suspended during freeze period
• Mutual cooperation required for quick resolution

15. BUSINESS CONTINUITY PLAN

15.1 Operational Backup Systems

• Secondary processing systems available
• Alternative banking channels maintained
• Cloud-based backup of all critical data
• 24/7 monitoring of all systems

15.2 Emergency Procedures

• Incident response team activation within 1 hour
• Alternative communication channels for partners
• Emergency fund transfer mechanisms where legally permitted
• Regulatory liaison team for immediate engagement

15.3 Recovery Procedures

• Step-by-step account reactivation process
• Priority-based fund settlement queue
• System integrity verification before resumption
• Gradual service restoration protocol

16. TRANSPARENCY & DISCLOSURE

16.1 Regular Reporting

• Monthly fund status reports to all partners
• Quarterly compliance status updates
• Annual audit report sharing
• Real-time system status updates on website

16.2 Incident Disclosure

• Immediate notification of any regulatory action
• Transparent communication about resolution efforts
• Regular updates until complete resolution
• Post-incident analysis and improvement measures

17. GENERAL PROVISIONS

17.1 Force Majeure

Neither party liable for events beyond reasonable control including pandemics, government actions, natural disasters, and regulatory account freezes.

17.2 Confidentiality

• 5-year post-termination confidentiality
• Non-disclosure of technical and business information
• Limited access on need-to-know basis
• Exception for regulatory compliance requirements

17.3 Amendments

• Written amendments only
• 30 days notice for commercial term changes (except emergency regulatory changes)
• Right to terminate if disagreeing with changes
• Emergency amendments possible for regulatory compliance

17.4 Governing Law

These terms are governed by Indian law with exclusive jurisdiction of Lucknow courts for interim relief.

15. CONTACT INFORMATION

For Support:

• Email: support@laraware.com
• Phone: +91 8188949800

For Legal Queries:

• Email: legalteam@laraware.com
• Phone: +91 9403891813

For Account Freeze/Emergency Issues:

• Emergency Helpline: +91 9403891813
• Email: info@laraware.com

Address:
LARAWARE PRIVATE LIMITED
Narjoga Tower – D-262, Vibhuti Khand
Gomti Nagar, Lucknow – 226010
Uttar Pradesh, India

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IMPORTANT DISCLAIMERS & WARNINGS

Risk Monitoring Disclaimer

⚠️ ZERO TOLERANCE POLICY: LARAWARE employs sophisticated risk monitoring systems and maintains a dedicated team that monitors ALL transactions 24/7. Any suspicious activity or involvement in illegal activities will result in IMMEDIATE account termination and PERMANENT fund forfeiture.

Fund Freeze Disclaimer

⚠️ CRITICAL NOTICE: In the event of regulatory action or account freeze by authorities, all partner settlements and fund withdrawals will be suspended until the account is reactivated. LARAWARE will make every effort to resolve such issues quickly, but cannot guarantee specific timelines for resolution as these depend on regulatory processes beyond our control.

Illegal Activity Warning

⚠️ PERMANENT CONSEQUENCES: Any involvement in gambling, narcotics, money laundering, or other illegal activities will result in:

• IMMEDIATE account termination
• PERMANENT fund freeze
• FORFEITURE of all funds
• LEGAL action and regulatory reporting
• LIFETIME ban from LARAWARE platform

Risk Acknowledgment

Partners acknowledge and accept that:

• ALL transactions are monitored by advanced AI/ML systems
• Risk team has authority to freeze accounts without prior notice
• Burden of proof for legitimacy lies entirely with the partner
• Regulatory actions may temporarily affect fund access
• Fund recovery requires complete documentation and verification
• LARAWARE prioritizes legal compliance over customer convenience

Legal Protection

• All customer funds are held in separate regulated accounts
• LARAWARE maintains comprehensive insurance for operational risks
• Regular compliance audits ensure regulatory adherence
• Dedicated legal team handles all regulatory matters
• Complete cooperation with law enforcement agencies

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By using our services, you acknowledge that you have read, understood, and agree to be bound by these Terms and Conditions, including the strict Risk Monitoring Policy and Zero Tolerance for Illegal Activities.

Last Updated: July 8, 2023
Version: 1.0

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