IRCTC Secures RBI Nod to Operate as Online Payment Aggregator; Share Price Surges

The Reserve Bank of India has granted an in-principle authorisation to IRCTC Payments Limited, a wholly owned subsidiary of IRCTC, allowing it to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. The development signals IRCTC’s deeper foray into the digital payments ecosystem alongside its core e-ticketing operations.

RBI Approval and Next Steps

IRCTC confirmed the update in an exchange filing, noting that the RBI issued the in-principle clearance via a letter dated 4 August 2025, which was received by email on 5 August. "Reserve Bank of India (RBI), vide its letter dated August 04, 2025 (received via email dated August 05, 2025), has granted ‘In-Principle’ authorisation 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. 

The final approval is 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.

Expansion into Payment Services 

IRCTC created its payments arm to expand into the digital payments space and streamline its core e-ticketing services. Branded as IRCTC i-Pay, the platform currently supports internet banking, debit and credit cards, UPI, wallets and autopay options. 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.

IRCTC Payments Arm Revenue Growth

The IRCTC i-Pay business generated ₹114.54 crore in revenue in FY24, reflecting an annual growth of 19.33 per cent. Meanwhile, the parent company posted an internet ticketing revenue of ₹372.5 crore in Q4 FY25, representing a healthy 8.78 per cent year-on-year rise. Overall, IRCTC recorded a milestone revenue of ₹1,269 crore during the fiscal year.

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IRCTC Share Price Performance 

As of August 6, 2025, at 1:20 PM, Indian Railway Catering & Tourism Corporation share price is trading at ₹732.10 per share, reflecting a gain of 0.81%. Over the past month, the stock has declined by 6.66%.

Conclusion

With in-principle authorisation from the RBI now secured, IRCTC Payments is well-positioned to formalise its presence in India’s digital payment space. The move not only enhances its fintech capabilities but also supports its growing digital service portfolio.

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