IRCTC Payments Gets RBI Nod To Operate As Payment Aggregator; Aims To Boost Online Transactions

The Reserve Bank of India (RBI) has now granted in-principle authorisation to IRCTC Payments Ltd. on August 4, 2025. This wholly owned subsidiary of Indian Railway Catering and Tourism Corporation (IRCTC) can now operate as an online payment aggregator (PA). Here’s what it means.

IRCTC Payments Gets RBI Nod To Operate As An Online Payment Aggregator 

 

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In a recent development, IRCTC Payments Ltd., a wholly owned subsidiary of Indian Railway Catering and Tourism Corporation, can operate as an online payment aggregator (PA). As per a report by NDTV Profit, the decision comes following the RBI’s nod on August 4 under the Payment and Settlement Systems Act, 2007.

The move aims to improve Indian Railways’ ticketing and hospitality services. It will allow them to facilitate online transactions directly between customers and merchants. This in-principle authorisation will boost online transactions. Moreover, it will also allow IRCTC Payments to collect funds from customers and transfer them to merchants after a certain time.

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IRCTC Steps Into The Online Payment Space 

Reportedly, IRCTC Payments was established in 2024 to diversify its revenue streams and enter the fintech area (financial technology). As per IRCTC, the subsidiary’s purpose is to “evolve into an innovative, technology-driven fintech company”

Furthermore, in April this year, the public sector undertaking (PSU) also floated a tender to rope in a technical service provider. This was to assist in providing end-to-end payment services. It should also be noted that this new licence is in line with IRCTC Payments’ long-term objective of providing payment aggregator solutions to various government and non-government agencies. As per a report by Inc42, it also plans to offer, market, and build business operations of all kinds of electronic and virtual payments.

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IRCTC had been planning to obtain a payment aggregator licence since 2022. The RBI initially rejected its application in February 2024. It was finally approved on August 4.

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