Indian Railway Catering and Tourism Corporation (IRCTC) Payments Limited, the payments arm of India’s largest online ticketing platform, has secured in-principle approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. This regulatory nod enables IRCTC Payments to process and settle digital transactions not just for its own vast railway ticketing business but also for government, private sector merchants, and end-users across India.
The approval, communicated via an RBI letter, empowers IRCTC Payments to facilitate online payments through multiple channels, including UPI, debit and credit cards, net banking, wallets, and autopay, reflecting the company’s commitment to streamlining digital experiences for millions of Indian consumers. The IRCTC i-Pay brand already serves over 4,500 lakh tickets yearly, accounting for transactions exceeding ₹61,700 crore in 2023-24—a testament to the platform’s scale and digital payments processing expertise.
IRCTC Payments Limited was incorporated in February 2024 to expand IRCTC’s role in the burgeoning Indian fintech industry. By leveraging its new regulatory status as a payment aggregator, IRCTC aims to extend its digital payment solutions far beyond core railway ticketing—offering services such as payment collections, merchant settlements, payment gateway integration, loyalty program management, as well as prepaid option management using gift and cash cards. With services structured under regulated frameworks, IRCTC is poised to compete with established industry leaders such as BillDesk, Razorpay, PayU, Cashfree, and CCAvenue.
The approval is expected to supplement IRCTC’s rapidly growing revenue streams from digital payments, with IRCTC i-Pay recording a 19% jump in revenue to ₹114.54 crore in FY24. The increased focus on digital transactions also had a positive impact on IRCTC’s share price, which rose over 1% following the announcement.
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Although the RBI approval is currently in principle, pending fulfillment of some regulatory conditions for final authorization, industry experts view this as a strategic step for IRCTC to diversify beyond its railway ticketing roots. As India’s digital economy expands, IRCTC Payments’ entry into the regulated payment aggregator space will likely fuel innovation and competition in online payments and fintech services across sectors.
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