A PSARA License is a mandatory authorization required by private security agencies to operate legally in India under the Private Security Agencies (Regulation) Act, 2005. This comprehensive regulatory framework was implemented by the Ministry of Home Affairs to standardize and monitor the rapidly growing private security sector in India. The Act came into effect on March 15, 2006, establishing specific guidelines for the operation, training, and management of private security agencies nationwide.

The PSARA licensing system ensures that security agencies meet minimum standards for personnel training, equipment, and operational protocols. It aims to professionalize the industry while simultaneously addressing security concerns by requiring background verification of security personnel. Under this regulatory framework, each state/UT has a designated Controlling Authority responsible for issuing licenses based on the central model rules, which they may adapt to local conditions while maintaining core compliance requirements.

In 2020, the Ministry updated the regulatory framework by introducing the Private Security Agencies Central Model Rules, 2020, superseding the earlier 2006 rules. Additionally, specific rules for cash transportation activities were introduced in 2018 to address the unique security challenges in that sector. To standardize processes nationwide, the Ministry of Home Affairs collaborated with the National Informatics Centre to develop the ‘Private Security Agency Licensing Portal,’ creating a unified digital platform for license issuance and management across all states and territories.