IRCTC becomes a payment aggregator

The Indian Railway Catering and Tourism Corporation (IRCTC) has secured in-principle approval from the Reserve Bank of India (RBI) to act as a payment aggregator.

"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 company said in its statement.

This license has been granted under the Payment and Settlement Systems Act, 2007, and will allow IRCTC to process online payments independently via its IRCTC Payments Limited subsidiary. It marks IRCTC’s entry into India’s fast-growing fintech ecosystem, traditionally dominated by private players like Razorpay, and Cashfree.

The final approval is however, still awaited and, as indicated by IRCTC in June, may take up to a year. The application for approval was initially submitted in December 2024 after IRCTC Payments was incorporated in February 2024.

The RBI had later sought clarifications, which were duly provided by the company.

IRCTC created its payments arm to expand into the digital payments space and streamline its core e-ticketing services. Branded as IRCTC i-Pay, beyond payment facilitation, the subsidiary also offers prepaid instruments like gift and cash cards, manages loyalty and coupon systems, operates as a Bharat Bill Payment Unit, and develops payment software and fintech solutions that support IRCTC’s e-commerce growth.