Online payment service of IRCTC receives preliminary approval from Reserve Bank of India to function as a payment aggregator digitally.
Indian Railway Catering and Tourism Corporation's Subsidiary Granted Preliminary Approval to Operate as Online Payment Aggregator
In a significant move, the Reserve Bank of India (RBI) has granted in-principle approval to IRCTC Payments Limited, a wholly-owned subsidiary of the Indian Railway Catering and Tourism Corporation (IRCTC), to operate as an online payment aggregator. This approval was conveyed in a letter dated August 4, 2025, and was received via email on August 5, 2025.
IRCTC Payments Limited, which was incorporated in February 2024, has been developing payment processing software and financial technology tools to support the e-commerce activities of the parent company. The approval is a step in IRCTC's plan to expand beyond its e-ticketing and travel services into the digital payments market.
The approval, however, is conditional and requires the company to meet certain conditions before receiving final authorization. The process for receiving final authorization could take up to a year, according to previous statements by IRCTC. The company was asked to provide additional information at the RBI's request.
IRCTC Payments Limited operates IRCTC i-Pay, a platform that supports internet banking, credit and debit cards, wallets, UPI, and autopay. In addition to these services, IRCTC i-Pay also issues prepaid instruments, such as gift cards, and serves as a Bharat Bill Payment Operating Unit.
In its plan, IRCTC Payments Limited aims to collaborate with both government and private-sector entities for secure and seamless digital transactions. The company intends to offer solutions to government agencies, state-owned companies, and private businesses.
In the 2024 fiscal year, IRCTC i-Pay reported a revenue of Rs 114.54 crore, representing a 19.33% increase from the previous year. This growth indicates a promising outlook for the company's expansion into the digital payments market.
IRCTC's long-term strategy is to transform IRCTC Payments into a broader technology-based financial services provider. With the preliminary approval from the RBI, IRCTC Payments Limited is one step closer to realizing this vision.
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