IRCTC Payments gets RBI’s in-principle approval to operate as an online payment aggregator

The Reserve Bank of India has granted in-principle approval to IRCTC Payments Limited, a wholly owned subsidiary of Indian Railway Catering and Tourism Corporation (IRCTC), to operate as an online payment aggregator.

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The approval, conveyed in a letter dated August 4, was disclosed by IRCTC in a stock exchange filing. The decision is a step in IRCTC’s plan to expand beyond its e-ticketing and travel services into the digital payments market.

"..Reserve Bank of India (RBI), vide its letter dated August 04, 2025 (received via email dated August 05, 2025), has granted ‘In-Principle’ authorization to IRCTC Payments Limited, a Wholly Owned Subsidiary of IRCTC, to operate as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007," the statement said.

IRCTC Payments was incorporated in February 2024 to operate as a payment aggregator. The company applied to the central bank in December 2024 and later provided additional information at the RBI’s request. The in-principle approval requires the company to meet certain conditions before receiving final authorisation, a process IRCTC has previously said could take up to a year.

“This authorisation is a stepping stone for IRCTC’s fintech foray,” the company said in its filing. The subsidiary plans to work with both government and private-sector entities to facilitate secure and seamless digital transactions.

Through IRCTC Payments, the public sector enterprise operates IRCTC i-Pay, a platform that supports internet banking, credit and debit cards, wallets, UPI and autopay. It also issues prepaid instruments, such as gift cards, and serves as a Bharat Bill Payment Operating Unit.

In the 2024 fiscal year, i-Pay reported revenue of Rs 114.54 crore, a 19.33% increase from the previous year. The subsidiary also develops payment processing software and financial technology tools to support the e-commerce activities of the parent.

IRCTC has said its long-term strategy is to build IRCTC Payments into a broader technology-based financial services provider, offering solutions to government agencies, state-owned companies and private businesses.