diff --git a/backend/Dockerfile b/backend/Dockerfile
index 6202c81..53e461e 100644
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -19,7 +19,6 @@ COPY --from=builder /app/build ./build
 COPY ./migrations ./build/migrations
 COPY package.json ./
 COPY --from=builder /app/config.json.default /usr/app/config.json
-RUN touch database.sqlite
 RUN npm install
 USER root
 ENV NODE_ENV="production"
diff --git a/backend/README.md b/backend/README.md
index 8340009..9cf49c6 100644
--- a/backend/README.md
+++ b/backend/README.md
@@ -182,3 +182,23 @@ Parameters:
 - `/deposit` - This url accepts one parameter and returns the submitted transaction hash if successful. This url is used to deposit some funds to the entryPointAddress from the sponsor wallet
   1. amount - The amount to be deposited in ETH
   
+## Local Docker Networks
+
+1. Ensure the postgres docker instance is up and running
+
+2. Here we need to create a network and tag backend & postgres on same network
+
+```sh
+docker network create arka-network    
+```
+
+```sh
+docker run --network arka-network --name local-setup-db-1 -d postgres
+```
+
+```sh
+docker run --network arka-network --name arka-backend -d arka-backend
+```
+
+
+
diff --git a/backend/migrations/20240611000002-create-sponsorship-policies.cjs b/backend/migrations/20240611000002-create-sponsorship-policies.cjs
index 1a09019..5805bbd 100644
--- a/backend/migrations/20240611000002-create-sponsorship-policies.cjs
+++ b/backend/migrations/20240611000002-create-sponsorship-policies.cjs
@@ -58,12 +58,12 @@ async function up({ context: queryInterface }) {
         startDate: {
             type: Sequelize.DATE,
             allowNull: true,
-            field: 'START_DATE'
+            field: 'START_TIME'
         },
         endDate: {
             type: Sequelize.DATE,
             allowNull: true,
-            field: 'END_DATE'
+            field: 'END_TIME'
         },
         globalMaxApplicable: {
             type: Sequelize.BOOLEAN,
diff --git a/backend/package.json b/backend/package.json
index 3bd99ad..e6afffa 100644
--- a/backend/package.json
+++ b/backend/package.json
@@ -10,7 +10,7 @@
     "lint": "eslint .",
     "lint:fix": "eslint . --fix",
     "check:types": "tsc --noEmit",
-    "build": "esbuild `find src \\( -name '*.ts' \\)` --platform=node --outdir=build --resolve-extensions=.js && cp -r ./src/migrations ./build/",
+    "build": "esbuild `find src \\( -name '*.ts' \\)` --platform=node --outdir=build --resolve-extensions=.js && cp -r ./migrations ./build/",
     "build:docker:prod": "docker build . -t my-fastify-app --build-arg APP_ENV=production",
     "start": "node build",
     "dev": "tsx watch src | pino-pretty --colorize",
diff --git a/backend/src/constants/ErrorMessage.ts b/backend/src/constants/ErrorMessage.ts
index 74a04b2..545fe8f 100644
--- a/backend/src/constants/ErrorMessage.ts
+++ b/backend/src/constants/ErrorMessage.ts
@@ -1,9 +1,21 @@
 export default {
     INVALID_DATA: 'Invalid data provided',
+    INVALID_SPONSORSHIP_POLICY: 'Invalid sponsorship policy data',
+    INVALID_SPONSORSHIP_POLICY_ID: 'Invalid sponsorship policy id',
     INVALID_API_KEY: 'Invalid Api Key',
     UNSUPPORTED_NETWORK: 'Unsupported network',
     UNSUPPORTED_NETWORK_TOKEN: 'Unsupported network/token',
     EMPTY_BODY: 'Empty Body received',
+    API_KEY_DOES_NOT_EXIST_FOR_THE_WALLET_ADDRESS: 'Api Key does not exist for the wallet address',
+    FAILED_TO_CREATE_SPONSORSHIP_POLICY: 'Failed to create sponsorship policy',
+    FAILED_TO_UPDATE_SPONSORSHIP_POLICY: 'Failed to update sponsorship policy',
+    SPONSORSHIP_POLICY_NOT_FOUND: 'Sponsorship policy not found',
+    SPONSORSHIP_POLICY_ALREADY_EXISTS: 'Sponsorship policy already exists',
+    SPONSORSHIP_POLICY_IS_DISABLED: 'Sponsorship policy is disabled',
+    FAILED_TO_DELETE_SPONSORSHIP_POLICY: 'Failed to delete sponsorship policy',
+    FAILED_TO_ENABLE_SPONSORSHIP_POLICY: 'Failed to enable sponsorship policy',
+    FAILED_TO_DISABLE_SPONSORSHIP_POLICY: 'Failed to disable sponsorship policy',
+    FAILED_TO_QUERY_SPONSORSHIP_POLICY: 'Failed to query sponsorship policy',
     FAILED_TO_PROCESS: 'Failed to process the request. Please try again or contact ARKA support team',
     INVALID_MODE: 'Invalid mode selected',
     DUPLICATE_RECORD: 'Duplicate record found',
diff --git a/backend/src/constants/ReturnCode.ts b/backend/src/constants/ReturnCode.ts
index bc7fc8d..863ed2f 100644
--- a/backend/src/constants/ReturnCode.ts
+++ b/backend/src/constants/ReturnCode.ts
@@ -1,4 +1,6 @@
 export default {
     SUCCESS: 200,
     FAILURE: 400,
+    BAD_REQUEST: 400,
+    NOT_FOUND: 404,
 }
diff --git a/backend/src/models/sponsorship-policy.ts b/backend/src/models/sponsorship-policy.ts
index 55cb7c5..251c535 100644
--- a/backend/src/models/sponsorship-policy.ts
+++ b/backend/src/models/sponsorship-policy.ts
@@ -9,20 +9,20 @@ export class SponsorshipPolicy extends Model {
     public isEnabled: boolean = false;
     public isApplicableToAllNetworks!: boolean;
     public enabledChains?: number[];
-    public isPerpetual!: boolean;
-    public startTime!: Date | null;
-    public endTime!: Date | null;
+    public isPerpetual: boolean = false;
+    public startTime: Date | null = null;
+    public endTime: Date | null = null;
     public globalMaximumApplicable: boolean = false;
-    public globalMaximumUsd!: number | null;
-    public globalMaximumNative!: number | null;
-    public globalMaximumOpCount!: number | null;
+    public globalMaximumUsd: number | null = null;
+    public globalMaximumNative: number | null = null;
+    public globalMaximumOpCount: number | null = null;
     public perUserMaximumApplicable: boolean = false;
-    public perUserMaximumUsd!: number | null;
-    public perUserMaximumNative!: number | null;
-    public perUserMaximumOpCount!: number | null;
+    public perUserMaximumUsd: number | null = null;
+    public perUserMaximumNative: number | null = null;
+    public perUserMaximumOpCount: number | null = null;
     public perOpMaximumApplicable: boolean = false;
-    public perOpMaximumUsd!: number | null;
-    public perOpMaximumNative!: number | null;
+    public perOpMaximumUsd: number | null = null;
+    public perOpMaximumNative: number | null = null;
     public addressAllowList: string[] | null = null;
     public addressBlockList: string[] | null = null;
     public readonly createdAt!: Date;
@@ -103,15 +103,15 @@ export function initializeSponsorshipPolicyModel(sequelize: Sequelize, schema: s
             defaultValue: false,
             field: 'IS_PERPETUAL'
         },
-        startDate: {
+        startTime: {
             type: DataTypes.DATE,
             allowNull: true,
-            field: 'START_DATE'
+            field: 'START_TIME'
         },
-        endDate: {
+        endTime: {
             type: DataTypes.DATE,
             allowNull: true,
-            field: 'END_DATE'
+            field: 'END_TIME'
         },
         globalMaximumApplicable: {
             type: DataTypes.BOOLEAN,
diff --git a/backend/src/plugins/config.ts b/backend/src/plugins/config.ts
index e09177d..9ed9f2c 100644
--- a/backend/src/plugins/config.ts
+++ b/backend/src/plugins/config.ts
@@ -38,6 +38,7 @@ export type ArkaConfig = Static<typeof ConfigSchema>;
 
 const configPlugin: FastifyPluginAsync = async (server) => {
   const validate = ajv.compile(ConfigSchema);
+  server.log.info("Validating .env file");
   const valid = validate(process.env);
   if (!valid) {
     throw new Error(
@@ -46,6 +47,8 @@ const configPlugin: FastifyPluginAsync = async (server) => {
     );
   }
 
+  server.log.info("Configuring .env file");
+
   const config = {
     LOG_LEVEL: process.env.LOG_LEVEL ?? '',
     API_PORT: process.env.API_PORT ?? '',
@@ -59,6 +62,9 @@ const configPlugin: FastifyPluginAsync = async (server) => {
     DATABASE_SCHEMA_NAME: process.env.DATABASE_SCHEMA_NAME ?? 'arka',
   }
 
+  server.log.info("Configured .env file");
+  server.log.info(`config: ${JSON.stringify(config, null, 2)}`);
+
   server.decorate("config", config);
 };
 
diff --git a/backend/src/plugins/db.ts b/backend/src/plugins/db.ts
index 86647bb..2758b67 100644
--- a/backend/src/plugins/db.ts
+++ b/backend/src/plugins/db.ts
@@ -8,6 +8,8 @@ import { Umzug, SequelizeStorage } from 'umzug';
 
 const databasePlugin: FastifyPluginAsync = async (server) => {
 
+  server.log.info(`Connecting to database... with URL:  ${server.config.DATABASE_URL} and schemaName: ${server.config.DATABASE_SCHEMA_NAME}`);
+
   const sequelize = new Sequelize(server.config.DATABASE_URL, {
     schema: server.config.DATABASE_SCHEMA_NAME,
   });
@@ -32,8 +34,6 @@ const databasePlugin: FastifyPluginAsync = async (server) => {
     console.error('Migration failed:', err)
     process.exitCode = 1
   }
-
-  //server.decorate('sequelize', sequelize);
 };
 
 declare module "fastify" {
diff --git a/backend/src/plugins/sequelizePlugin.ts b/backend/src/plugins/sequelizePlugin.ts
index 4dcd264..c84ab85 100644
--- a/backend/src/plugins/sequelizePlugin.ts
+++ b/backend/src/plugins/sequelizePlugin.ts
@@ -7,6 +7,7 @@ import { initializeSponsorshipPolicyModel } from '../models/sponsorship-policy.j
 import { initializeArkaConfigModel } from "../models/arka-config.js";
 import { APIKeyRepository } from "../repository/api-key-repository.js";
 import { ArkaConfigRepository } from "../repository/arka-config-repository.js";
+import { SponsorshipPolicyRepository } from "../repository/sponsorship-policy-repository.js";
 const pg = await import('pg');
 const Client = pg.default.Client;
 
@@ -43,9 +44,10 @@ const sequelizePlugin: FastifyPluginAsync = async (server) => {
     // Initialize models
     initializeArkaConfigModel(sequelize, server.config.DATABASE_SCHEMA_NAME);
     const initializedAPIKeyModel = initializeAPIKeyModel(sequelize, server.config.DATABASE_SCHEMA_NAME);
-    sequelize.models.APIKey = initializedAPIKeyModel;
+    //sequelize.models.APIKey = initializedAPIKeyModel;
     server.log.info(`Initialized APIKey model... ${sequelize.models.APIKey}`);
     initializeSponsorshipPolicyModel(sequelize, server.config.DATABASE_SCHEMA_NAME);
+    server.log.info('Initialized SponsorshipPolicy model...');
 
     server.log.info('Initialized all models...');
 
@@ -55,6 +57,8 @@ const sequelizePlugin: FastifyPluginAsync = async (server) => {
     server.decorate('apiKeyRepository', apiKeyRepository);
     const arkaConfigRepository : ArkaConfigRepository = new ArkaConfigRepository(sequelize);
     server.decorate('arkaConfigRepository', arkaConfigRepository);
+    const sponsorshipPolicyRepository = new SponsorshipPolicyRepository(sequelize);
+    server.decorate('sponsorshipPolicyRepository', sponsorshipPolicyRepository);
 
     server.log.info('decorated fastify server with models...');
 
@@ -70,6 +74,7 @@ declare module "fastify" {
         sequelize: Sequelize;
         apiKeyRepository: APIKeyRepository;
         arkaConfigRepository: ArkaConfigRepository;
+        sponsorshipPolicyRepository: SponsorshipPolicyRepository;
     }
 }
 
diff --git a/backend/src/repository/sponsorship-policy-repository.ts b/backend/src/repository/sponsorship-policy-repository.ts
index 3d44434..eced7fb 100644
--- a/backend/src/repository/sponsorship-policy-repository.ts
+++ b/backend/src/repository/sponsorship-policy-repository.ts
@@ -1,5 +1,7 @@
 import { Sequelize, Op } from 'sequelize';
 import { SponsorshipPolicy } from '../models/sponsorship-policy';
+import { SponsorshipPolicyDto } from '../types/sponsorship-policy-dto';
+import { ethers } from 'ethers';
 
 export class SponsorshipPolicyRepository {
     private sequelize: Sequelize;
@@ -67,7 +69,7 @@ export class SponsorshipPolicyRepository {
         return result ? result.get() as SponsorshipPolicy : null;
     }
 
-    async createSponsorshipPolicy(sponsorshipPolicy: SponsorshipPolicy): Promise<SponsorshipPolicy> {
+    async createSponsorshipPolicy(sponsorshipPolicy: SponsorshipPolicyDto): Promise<SponsorshipPolicy> {
         this.validateSponsorshipPolicy(sponsorshipPolicy);
 
         const result = await this.sequelize.models.SponsorshipPolicy.create({
@@ -99,7 +101,7 @@ export class SponsorshipPolicyRepository {
         return result.get() as SponsorshipPolicy;
     }
 
-    async updateSponsorshipPolicy(sponsorshipPolicy: SponsorshipPolicy): Promise<SponsorshipPolicy> {
+    async updateSponsorshipPolicy(sponsorshipPolicy: SponsorshipPolicyDto): Promise<SponsorshipPolicy> {
 
         // check if sponsorship policy exists (by primary key id)
         const existingSponsorshipPolicy = await this.findOneById(sponsorshipPolicy.id as number);
@@ -119,29 +121,110 @@ export class SponsorshipPolicyRepository {
             existingSponsorshipPolicy.startTime = null;
             existingSponsorshipPolicy.endTime = null;
         } else {
-            existingSponsorshipPolicy.startTime = sponsorshipPolicy.startTime;
-            existingSponsorshipPolicy.endTime = sponsorshipPolicy.endTime;
+
+            if (!sponsorshipPolicy.startTime || sponsorshipPolicy.startTime == null) {
+                existingSponsorshipPolicy.startTime = null;
+            } else {
+                existingSponsorshipPolicy.startTime = sponsorshipPolicy.startTime;
+            }
+
+            if (!sponsorshipPolicy.endTime || sponsorshipPolicy.endTime == null) {
+                existingSponsorshipPolicy.endTime = null;
+            } else {
+                existingSponsorshipPolicy.endTime = sponsorshipPolicy.endTime;
+            }
         }
+
         existingSponsorshipPolicy.globalMaximumApplicable = sponsorshipPolicy.globalMaximumApplicable;
-        existingSponsorshipPolicy.globalMaximumUsd = sponsorshipPolicy.globalMaximumUsd;
-        existingSponsorshipPolicy.globalMaximumNative = sponsorshipPolicy.globalMaximumNative;
-        existingSponsorshipPolicy.globalMaximumOpCount = sponsorshipPolicy.globalMaximumOpCount;
+
+        if (existingSponsorshipPolicy.globalMaximumApplicable) {
+            if (!sponsorshipPolicy.globalMaximumUsd || sponsorshipPolicy.globalMaximumUsd == null) {
+                existingSponsorshipPolicy.globalMaximumUsd = null;
+            } else {
+                existingSponsorshipPolicy.globalMaximumUsd = sponsorshipPolicy.globalMaximumUsd;
+            }
+
+            if (!sponsorshipPolicy.globalMaximumNative || sponsorshipPolicy.globalMaximumNative == null) {
+                existingSponsorshipPolicy.globalMaximumNative = null;
+            } else {
+                existingSponsorshipPolicy.globalMaximumNative = sponsorshipPolicy.globalMaximumNative;
+            }
+
+            if (!sponsorshipPolicy.globalMaximumOpCount || sponsorshipPolicy.globalMaximumOpCount == null) {
+                existingSponsorshipPolicy.globalMaximumOpCount = null;
+            } else {
+                existingSponsorshipPolicy.globalMaximumOpCount = sponsorshipPolicy.globalMaximumOpCount;
+            }
+        } else {
+            existingSponsorshipPolicy.globalMaximumUsd = null;
+            existingSponsorshipPolicy.globalMaximumNative = null;
+            existingSponsorshipPolicy.globalMaximumOpCount = null;
+        }
+
         existingSponsorshipPolicy.perUserMaximumApplicable = sponsorshipPolicy.perUserMaximumApplicable;
-        existingSponsorshipPolicy.perUserMaximumNative = sponsorshipPolicy.perUserMaximumNative;
-        existingSponsorshipPolicy.perUserMaximumOpCount = sponsorshipPolicy.perUserMaximumOpCount;
-        existingSponsorshipPolicy.perUserMaximumUsd = sponsorshipPolicy.perUserMaximumUsd;
+
+        if (existingSponsorshipPolicy.perUserMaximumApplicable) {
+            if (!sponsorshipPolicy.perUserMaximumUsd || sponsorshipPolicy.perUserMaximumUsd == null) {
+                existingSponsorshipPolicy.perUserMaximumUsd = null;
+            } else {
+                existingSponsorshipPolicy.perUserMaximumUsd = sponsorshipPolicy.perUserMaximumUsd;
+            }
+
+            if (!sponsorshipPolicy.perUserMaximumNative || sponsorshipPolicy.perUserMaximumNative == null) {
+                existingSponsorshipPolicy.perUserMaximumNative = null;
+            } else {
+                existingSponsorshipPolicy.perUserMaximumNative = sponsorshipPolicy.perUserMaximumNative;
+            }
+
+            if (!sponsorshipPolicy.perUserMaximumOpCount || sponsorshipPolicy.perUserMaximumOpCount == null) {
+                existingSponsorshipPolicy.perUserMaximumOpCount = null;
+            } else {
+                existingSponsorshipPolicy.perUserMaximumOpCount = sponsorshipPolicy.perUserMaximumOpCount;
+            }
+        } else {
+            existingSponsorshipPolicy.perUserMaximumUsd = null;
+            existingSponsorshipPolicy.perUserMaximumNative = null;
+            existingSponsorshipPolicy.perUserMaximumOpCount = null;
+        }
+
         existingSponsorshipPolicy.perOpMaximumApplicable = sponsorshipPolicy.perOpMaximumApplicable;
-        existingSponsorshipPolicy.perOpMaximumNative = sponsorshipPolicy.perOpMaximumNative;
-        existingSponsorshipPolicy.perOpMaximumUsd = sponsorshipPolicy.perOpMaximumUsd;
+
+        if (existingSponsorshipPolicy.perOpMaximumApplicable) {
+            if (!sponsorshipPolicy.perOpMaximumUsd || sponsorshipPolicy.perOpMaximumUsd == null) {
+                existingSponsorshipPolicy.perOpMaximumUsd = null;
+            } else {
+                existingSponsorshipPolicy.perOpMaximumUsd = sponsorshipPolicy.perOpMaximumUsd;
+            }
+
+            if (!sponsorshipPolicy.perOpMaximumNative || sponsorshipPolicy.perOpMaximumNative == null) {
+                existingSponsorshipPolicy.perOpMaximumNative = null;
+            } else {
+                existingSponsorshipPolicy.perOpMaximumNative = sponsorshipPolicy.perOpMaximumNative;
+            }
+        } else {
+            existingSponsorshipPolicy.perOpMaximumUsd = null;
+            existingSponsorshipPolicy.perOpMaximumNative = null;
+        }
+
         existingSponsorshipPolicy.isPublic = sponsorshipPolicy.isPublic;
-        existingSponsorshipPolicy.addressAllowList = sponsorshipPolicy.addressAllowList;
-        existingSponsorshipPolicy.addressBlockList = sponsorshipPolicy.addressBlockList;
+
+        if (existingSponsorshipPolicy.addressAllowList && existingSponsorshipPolicy.addressAllowList.length > 0) {
+            existingSponsorshipPolicy.addressAllowList = sponsorshipPolicy.addressAllowList as string[];
+        } else {
+            existingSponsorshipPolicy.addressAllowList = null;
+        }
+
+        if (existingSponsorshipPolicy.addressBlockList && existingSponsorshipPolicy.addressBlockList.length > 0) {
+            existingSponsorshipPolicy.addressBlockList = sponsorshipPolicy.addressBlockList as string[];
+        } else {
+            existingSponsorshipPolicy.addressBlockList = null;
+        }
 
         const result = await existingSponsorshipPolicy.save();
         return result.get() as SponsorshipPolicy;
     }
 
-    validateSponsorshipPolicy(sponsorshipPolicy: SponsorshipPolicy) {
+    validateSponsorshipPolicy(sponsorshipPolicy: SponsorshipPolicyDto) {
         let errors: string[] = [];
 
         if (!sponsorshipPolicy.name || !sponsorshipPolicy.description) {
@@ -159,9 +242,20 @@ export class SponsorshipPolicyRepository {
                 errors.push('Start and End time are required fields');
             }
 
+            const currentTime = new Date();
+
             if (sponsorshipPolicy.startTime && sponsorshipPolicy.endTime) {
-                if (sponsorshipPolicy.startTime < new Date() || sponsorshipPolicy.endTime < new Date() || sponsorshipPolicy.endTime < sponsorshipPolicy.startTime) {
-                    errors.push('Invalid start and end time');
+                const startTime = new Date(sponsorshipPolicy.startTime + 'Z');
+                const endTime = new Date(sponsorshipPolicy.endTime + 'Z');
+
+                if (startTime.getTime() < currentTime.getTime()) {
+                    errors.push(`Invalid start time. Provided start time is ${startTime.toISOString()} in GMT. The start time must be now or in the future. Current time is ${currentTime.toISOString()} in GMT.`);
+                }
+                if (endTime.getTime() < currentTime.getTime()) {
+                    errors.push(`Invalid end time. Provided end time is ${endTime.toISOString()} in GMT. The end time must be in the future. Current time is ${currentTime.toISOString()} in GMT.`);
+                }
+                if (endTime.getTime() < startTime.getTime()) {
+                    errors.push(`Invalid end time. Provided end time is ${endTime.toISOString()} in GMT and start time is ${startTime.toISOString()} in GMT. The end time must be greater than the start time.`);
                 }
             }
         }
@@ -170,18 +264,101 @@ export class SponsorshipPolicyRepository {
             if (!sponsorshipPolicy.globalMaximumUsd && !sponsorshipPolicy.globalMaximumNative && !sponsorshipPolicy.globalMaximumOpCount) {
                 errors.push('At least 1 Global maximum value is required');
             }
+
+            const globalMaximumUsd = sponsorshipPolicy.globalMaximumUsd;
+
+            if (globalMaximumUsd !== undefined && globalMaximumUsd !== null) {
+                const parts = globalMaximumUsd.toString().split('.');
+                if (parts.length > 2 || parts[0].length > 6 || (parts[1] && parts[1].length > 4)) {
+                    errors.push(`Invalid value for globalMaximumUsd. The value ${globalMaximumUsd} exceeds the maximum allowed precision of 10 total digits, with a maximum of 4 digits allowed after the decimal point.`);
+                }
+            }
+
+            const globalMaximumNative = sponsorshipPolicy.globalMaximumNative;
+
+            if (globalMaximumNative !== undefined && globalMaximumNative !== null) {
+                const parts = globalMaximumNative.toString().split('.');
+                if (parts.length > 2 || parts[0].length > 4 || (parts[1] && parts[1].length > 18)) {
+                    errors.push(`Invalid value for globalMaximumNative. The value ${globalMaximumNative} exceeds the maximum allowed precision of 22 total digits, with a maximum of 18 digits allowed after the decimal point.`);
+                }
+            }
         }
 
         if (sponsorshipPolicy.perUserMaximumApplicable) {
             if (!sponsorshipPolicy.perUserMaximumUsd && !sponsorshipPolicy.perUserMaximumNative && !sponsorshipPolicy.perUserMaximumOpCount) {
                 errors.push('At least 1 Per User maximum value is required');
             }
+
+            const perUserMaximumUsd = sponsorshipPolicy.perUserMaximumUsd;
+
+            if (perUserMaximumUsd !== undefined && perUserMaximumUsd !== null) {
+                const parts = perUserMaximumUsd.toString().split('.');
+                if (parts.length > 2 || parts[0].length > 6 || (parts[1] && parts[1].length > 4)) {
+                    errors.push(`Invalid value for perUserMaximumUsd. The value ${perUserMaximumUsd} exceeds the maximum allowed precision of 10 total digits, with a maximum of 4 digits allowed after the decimal point.`);
+                }
+            }
+
+            const perUserMaximumNative = sponsorshipPolicy.perUserMaximumNative;
+
+            if (perUserMaximumNative !== undefined && perUserMaximumNative !== null) {
+                const parts = perUserMaximumNative.toString().split('.');
+                if (parts.length > 2 || parts[0].length > 4 || (parts[1] && parts[1].length > 18)) {
+                    errors.push(`Invalid value for perUserMaximumNative. The value ${perUserMaximumNative} exceeds the maximum allowed precision of 22 total digits, with a maximum of 18 digits allowed after the decimal point.`);
+                }
+            }
         }
 
         if (sponsorshipPolicy.perOpMaximumApplicable) {
             if (!sponsorshipPolicy.perOpMaximumUsd && !sponsorshipPolicy.perOpMaximumNative) {
                 errors.push('At least 1 Per Op maximum value is required');
             }
+
+            const perOpMaximumUsd = sponsorshipPolicy.perOpMaximumUsd;
+
+            if (perOpMaximumUsd !== undefined && perOpMaximumUsd !== null) {
+                const parts = perOpMaximumUsd.toString().split('.');
+                if (parts.length > 2 || parts[0].length > 6 || (parts[1] && parts[1].length > 4)) {
+                    errors.push(`Invalid value for perOpMaximumUsd. The value ${perOpMaximumUsd} exceeds the maximum allowed precision of 10 total digits, with a maximum of 4 digits allowed after the decimal point.`);
+                }
+            }
+
+            const perOpMaximumNative = sponsorshipPolicy.perOpMaximumNative;
+
+            if (perOpMaximumNative !== undefined && perOpMaximumNative !== null) {
+                const parts = perOpMaximumNative.toString().split('.');
+                if (parts.length > 2 || parts[0].length > 4 || (parts[1] && parts[1].length > 18)) {
+                    errors.push(`Invalid value for perOpMaximumNative. The value ${perOpMaximumNative} exceeds the maximum allowed precision of 22 total digits, with a maximum of 18 digits allowed after the decimal point.`);
+                }
+            }
+        }
+
+        // check if the addressAllowList and addressBlockList are valid addresses
+        if (sponsorshipPolicy.addressAllowList && sponsorshipPolicy.addressAllowList.length > 0) {
+            const invalidAddresses: string[] = [];
+
+            sponsorshipPolicy.addressAllowList.forEach(address => {
+                if (!address || !ethers.utils.isAddress(address)) {
+                    invalidAddresses.push(address);
+                }
+            });
+
+            if (invalidAddresses.length > 0) {
+                errors.push(`The following addresses in addressAllowList are invalid: ${invalidAddresses.join(', ')}`);
+            }
+        }
+
+        if (sponsorshipPolicy.addressBlockList && sponsorshipPolicy.addressBlockList.length > 0) {
+            const invalidAddresses: string[] = [];
+
+            sponsorshipPolicy.addressBlockList.forEach(address => {
+                if (!address || !ethers.utils.isAddress(address)) {
+                    invalidAddresses.push(address);
+                }
+            });
+
+            if (invalidAddresses.length > 0) {
+                errors.push(`The following addresses in addressBlockList are invalid: ${invalidAddresses.join(', ')}`);
+            }
         }
 
         if (errors.length > 0) {
@@ -196,6 +373,10 @@ export class SponsorshipPolicyRepository {
             throw new Error('Sponsorship Policy not found');
         }
 
+        if (!existingSponsorshipPolicy.isEnabled) {
+            throw new Error('Cannot disable a policy which is already disabled');
+        }
+
         existingSponsorshipPolicy.isEnabled = false;
         await existingSponsorshipPolicy.save();
     }
@@ -207,21 +388,40 @@ export class SponsorshipPolicyRepository {
             throw new Error('Sponsorship Policy not found');
         }
 
+        if (existingSponsorshipPolicy.isEnabled) {
+            throw new Error('Cannot enable a policy which is already enabled');
+        }
+
         existingSponsorshipPolicy.isEnabled = true;
         await existingSponsorshipPolicy.save();
     }
 
-    async deleteSponsorshipPolicy(id: number): Promise<void> {
+    async deleteSponsorshipPolicy(id: number): Promise<number> {
         const existingSponsorshipPolicy = await this.findOneById(id);
 
         if (!existingSponsorshipPolicy) {
-            throw new Error('Sponsorship Policy not found');
+            throw new Error(`Sponsorship Policy deletion failed as Policy doesnot exist with id: ${id}`);
         }
 
-        await existingSponsorshipPolicy.destroy();
+        const deletedCount = await this.sequelize.models.SponsorshipPolicy.destroy({
+            where
+                : { id: id }
+        });
+
+        if (deletedCount === 0) {
+            throw new Error(`SponsorshipPolicy deletion failed for id: ${id}`);
+        }
+
+        return deletedCount;
     }
 
-    async deleteAllSponsorshipPolicies(): Promise<void> {
-        await this.sequelize.models.SponsorshipPolicy.destroy({ where: {} });
+    async deleteAllSponsorshipPolicies(): Promise<{ message: string }> {
+        try {
+            await this.sequelize.models.SponsorshipPolicy.destroy({ where: {} });
+            return { message: 'Successfully deleted all policies' };
+        } catch (err) {
+            console.error(err);
+            throw new Error('Failed to delete all policies');
+        }
     }
 }
\ No newline at end of file
diff --git a/backend/src/routes/admin.ts b/backend/src/routes/admin.ts
index d17ac5b..ac6fe7f 100644
--- a/backend/src/routes/admin.ts
+++ b/backend/src/routes/admin.ts
@@ -16,7 +16,7 @@ const adminRoutes: FastifyPluginAsync = async (server) => {
       const body: any = JSON.parse(request.body as string);
       if (!body) return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.EMPTY_BODY });
       if (!body.walletAddress) return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.INVALID_DATA });
-      if (ethers.utils.getAddress(body.walletAddress) === server.config.ADMIN_WALLET_ADDRESS) return reply.code(ReturnCode.SUCCESS).send({ error: null, message: "Successfully Logged in" });
+      if (ethers.utils.getAddress(body.walletAddress) === ethers.utils.getAddress(server.config.ADMIN_WALLET_ADDRESS)) return reply.code(ReturnCode.SUCCESS).send({ error: null, message: "Successfully Logged in" });
       return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.INVALID_USER });
     } catch (err: any) {
       return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.INVALID_USER });
diff --git a/backend/src/routes/sponsorship-policy-route.ts b/backend/src/routes/sponsorship-policy-route.ts
new file mode 100644
index 0000000..2862a19
--- /dev/null
+++ b/backend/src/routes/sponsorship-policy-route.ts
@@ -0,0 +1,110 @@
+/* eslint-disable @typescript-eslint/no-explicit-any */
+import { FastifyPluginAsync, FastifyReply, FastifyRequest } from "fastify";
+import ErrorMessage from "../constants/ErrorMessage.js";
+import ReturnCode from "../constants/ReturnCode.js";
+import { SponsorshipPolicyDto } from "../types/sponsorship-policy-dto.js";
+
+interface RouteParams {
+  id: string;
+}
+
+const sponsorshipPolicyRoutes: FastifyPluginAsync = async (server) => {
+
+  server.get("/getPolicies", async function (request, reply) {
+    try {
+      const result = await server.sponsorshipPolicyRepository.findAll();
+
+      if (!result) {
+        return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.FAILED_TO_QUERY_SPONSORSHIP_POLICY });
+      }
+
+      return reply.code(ReturnCode.SUCCESS).send(result);
+    } catch (err: any) {
+      request.log.error(err);
+      return reply.code(ReturnCode.FAILURE).send({ error: err.message ?? ErrorMessage.FAILED_TO_QUERY_SPONSORSHIP_POLICY });
+    }
+  })
+
+  server.post("/addPolicy", async function (request, reply) {
+    try {
+      // parse the request body as JSON
+      const sponsorshipPolicyDto: SponsorshipPolicyDto = JSON.parse(JSON.stringify(request.body)) as SponsorshipPolicyDto;
+      if (!sponsorshipPolicyDto) return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.EMPTY_BODY });
+
+      // id is to be null 
+      if (sponsorshipPolicyDto.id || sponsorshipPolicyDto.id as number > 0 ||
+        !sponsorshipPolicyDto.walletAddress ||
+        !sponsorshipPolicyDto.name) {
+        return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.INVALID_SPONSORSHIP_POLICY });
+      }
+
+      // verify if api key exists for the given wallet address
+      const apiKey = await server.apiKeyRepository.findOneByWalletAddress(sponsorshipPolicyDto.walletAddress);
+
+      if (!apiKey) {
+        return reply.code(ReturnCode.FAILURE).send({
+          error: ErrorMessage.API_KEY_DOES_NOT_EXIST_FOR_THE_WALLET_ADDRESS
+        });
+      }
+
+      const result = await server.sponsorshipPolicyRepository.createSponsorshipPolicy(sponsorshipPolicyDto);
+      if (!result) {
+        return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.FAILED_TO_CREATE_SPONSORSHIP_POLICY });
+      }
+
+      return reply.code(ReturnCode.SUCCESS).send(result);
+    } catch (err: any) {
+      request.log.error(err);
+      return reply.code(ReturnCode.FAILURE).send({ error: err.message ?? ErrorMessage.FAILED_TO_CREATE_SPONSORSHIP_POLICY });
+    }
+  })
+
+
+  server.delete<{ Params: RouteParams }>("/deletePolicy/:id", async (request, reply) => {
+    try {
+      const id = Number(request.params.id);
+      if (isNaN(id)) {
+        return reply.code(400).send({ error: ErrorMessage.INVALID_SPONSORSHIP_POLICY_ID });
+      }
+
+      const result = await server.sponsorshipPolicyRepository.deleteSponsorshipPolicy(id);
+      return reply.code(200).send({ message: `Successfully deleted policy with id ${id}` });
+    } catch (err) {
+      request.log.error(err);
+      return reply.code(500).send({ error: ErrorMessage.FAILED_TO_DELETE_SPONSORSHIP_POLICY });
+    }
+  });
+
+
+  server.put<{ Body: SponsorshipPolicyDto }>("/updatePolicy", async (request, reply) => {
+    try {
+      const sponsorshipPolicyDto: SponsorshipPolicyDto = JSON.parse(JSON.stringify(request.body)) as SponsorshipPolicyDto;
+      const id = sponsorshipPolicyDto.id;
+
+      if (!id || isNaN(id)) {
+        return reply.code(ReturnCode.BAD_REQUEST).send({ error: ErrorMessage.INVALID_SPONSORSHIP_POLICY_ID });
+      }
+
+      const existingSponsorshipPolicy = await server.sponsorshipPolicyRepository.findOneById(id);
+      if (!existingSponsorshipPolicy) {
+        return reply.code(ReturnCode.NOT_FOUND).send({ error: ErrorMessage.SPONSORSHIP_POLICY_NOT_FOUND });
+      }
+
+      // cannot update a disabled policy
+      if (!existingSponsorshipPolicy.isEnabled) {
+        return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.SPONSORSHIP_POLICY_IS_DISABLED });
+      }
+
+      const updatedPolicy = await server.sponsorshipPolicyRepository.updateSponsorshipPolicy(sponsorshipPolicyDto);
+      return reply.code(ReturnCode.SUCCESS).send(updatedPolicy);
+    } catch (err) {
+      request.log.error(err);
+      return reply.code(ReturnCode.FAILURE).send({ error: ErrorMessage.FAILED_TO_UPDATE_SPONSORSHIP_POLICY });
+    }
+  });
+
+
+
+};
+
+export default sponsorshipPolicyRoutes;
diff --git a/backend/src/server.ts b/backend/src/server.ts
index 975a133..7eab9bf 100644
--- a/backend/src/server.ts
+++ b/backend/src/server.ts
@@ -21,6 +21,7 @@ import { APIKey } from './models/api-key.js';
 import { APIKeyRepository } from './repository/api-key-repository.js';
 import { ArkaConfig } from './models/arka-config.js';
 import { ArkaConfigRepository } from './repository/arka-config-repository.js';
+import sponsorshipPolicyRoutes from './routes/sponsorship-policy-route.js';
 
 let server: FastifyInstance;
 
@@ -57,6 +58,8 @@ const initializeServer = async (): Promise<void> => {
 
   await server.register(metadataRoutes);
 
+  await server.register(sponsorshipPolicyRoutes);
+
   // Database
   await server.register(database);
 
diff --git a/backend/src/types/sponsorship-policy-dto.ts b/backend/src/types/sponsorship-policy-dto.ts
index 9a25845..b03a1a6 100644
--- a/backend/src/types/sponsorship-policy-dto.ts
+++ b/backend/src/types/sponsorship-policy-dto.ts
@@ -1,6 +1,6 @@
 // DTO for receiving data in the POST request to create a sponsorship policy
 export interface SponsorshipPolicyDto {
-    id: number;              // ID of the policy
+    id?: number;              // ID of the policy
     walletAddress: string;         // The wallet address associated with the API key
     name: string;                  // Name of the sponsorship policy
     description: string;           // Description of the sponsorship policy
@@ -9,21 +9,21 @@ export interface SponsorshipPolicyDto {
     isApplicableToAllNetworks: boolean;          // Flag to indicate if the policy is universal
     enabledChains?: number[];      // Array of enabled chain IDs
     isPerpetual: boolean;          // Flag to indicate if the policy is perpetual
-    startDate?: string;            // Optional start date for the policy
-    endDate?: string;              // Optional end date for the policy
+    startTime?: Date | null;            // Optional start date for the policy
+    endTime?: Date | null;              // Optional end date for the policy
     globalMaximumApplicable: boolean; // Flag to indicate if the global maximum is applicable
-    globalMaximumUsd?: number; // Optional global maximum USD limit
-    globalMaximumNative?: number; // Optional global maximum native limit
-    globalMaximumOpCount?: number; // Optional global maximum operation count
+    globalMaximumUsd?: number | null; // Optional global maximum USD limit
+    globalMaximumNative?: number | null; // Optional global maximum native limit
+    globalMaximumOpCount?: number | null; // Optional global maximum operation count
     perUserMaximumApplicable: boolean; // Flag to indicate if the per user maximum is applicable
-    perUserMaximumUsd?: number; // Optional per user maximum USD limit
-    perUserMaximumNative?: number; //   Optional per user maximum native limit 
+    perUserMaximumUsd?: number | null; // Optional per user maximum USD limit
+    perUserMaximumNative?: number | null; //   Optional per user maximum native limit 
     perUserMaximumOpCount?: number; // Optional per user maximum operation count
     perOpMaximumApplicable: boolean; // Flag to indicate if the per operation maximum is applicable
-    perOpMaximumUsd?: number; // Optional per operation maximum USD limit
-    perOpMaximumNative?: number; // Optional per operation maximum native limit
-    addressAllowList?: string[]; // Optional array of allowed addresses
-    addressBlockList?: string[]; // Optional array of blocked addresses
+    perOpMaximumUsd?: number | null; // Optional per operation maximum USD limit
+    perOpMaximumNative?: number | null; // Optional per operation maximum native limit
+    addressAllowList?: string[] | null; // Optional array of allowed addresses
+    addressBlockList?: string[] | null; // Optional array of blocked addresses
     isExpired: boolean; // Flag to indicate if the policy is expired
     isCurrent: boolean; // Flag to indicate if the policy is current
     isApplicable: boolean; // Flag to indicate if the policy is applicable
diff --git a/docker-compose.yml b/docker-compose.yml
index 832910f..23143a6 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -20,16 +20,16 @@ services:
       - API_PORT=5050
       - UNSAFE_MODE=false
       - SUPPORTED_NETWORKS=
-      - CRON_PRIVATE_KEY=""
+      - CRON_PRIVATE_KEY=
       - DEFAULT_INDEXER_ENDPOINT=http://localhost:3003
       - FEE_MARKUP=0
       - MULTI_TOKEN_MARKUP=1150000
-      - ADMIN_WALLET_ADDRESS=""
-      - ETHERSCAN_GAS_ORACLES=
-      - DEFAULT_API_KEY=
-      - WEBHOOK_URL=
-      - DATABASE_URL="postgresql://arkauser:paymaster@localhost:5432/arkadev"
-      - DATABASE_SCHEMA_NAME=arka
+      - ADMIN_WALLET_ADDRESS=
+      - ETHERSCAN_GAS_ORACLES=""
+      - DEFAULT_API_KEY=""
+      - WEBHOOK_URL=""
+      - DATABASE_URL=postgresql://arkauser:paymaster@local-setup-db-1:5432/arkadev
+      - DATABASE_SCHEMA_NAME="arka"
       - DATABASE_SSL_ENABLED=false
       - DATABASE_SSL_REJECT_UNAUTHORIZED=false
     build: 
@@ -50,4 +50,4 @@ services:
     expose:
       - 3002
     ports:
-      - "3002:3002"
\ No newline at end of file
+      - "3002:3002"