IRCTC Payments Gets RBI Nod To Operate As Payment Aggregator

SUMMARY

RBI has granted 'in-principle' authorisation to IRCTC Payments Limited, the fintech subsidiary of Indian Railway Catering and Tourism Corporation (IRCTC), to operate as an online payment aggregator (PA)

The nod from the central bank will allow IRCTC Payments to facilitate online transactions between customers and merchants

The PSU had been eyeing an entrance in the payments ecosystem since 2022 when it was planning to approach RBI for an aggregator license in September

The Reserve Bank of India (RBI) has granted ‘in-principle’ authorisation to IRCTC Payments Limited, the fintech subsidiary of Indian Railway Catering and Tourism Corporation (IRCTC), to operate as an online payment aggregator (PA).

The authorisation from the RBI was conveyed via a letter dated August 04, 2025. This marks a significant step for the state-backed company’s expansion into the fintech sector.

The nod from the central bank will allow IRCTC Payments to facilitate online transactions between customers and merchants. The licence will also allow IRCTC Payments to pool the funds received from customers and transfer them to merchants after a certain time period.

IRCTC Payments was established last year with the strategic goal of diversifying IRCTC’s revenue streams and entering the fintech arena.

As per IRCTC prior disclosures, the subsidiary’s purpose is to “evolve into an innovative, technology-driven fintech company, delivering payment aggregator solutions beyond IRCTC to both government and non-government agencies outside the IRCTC ecosystem.”

In April this year, the public sector undertaking (PSU) also floated a tender to rope in a technical service provider to assist in providing end-to-end payment services.

The new authorisation is also in line with IRCTC Payments’ long-term objective of providing payment aggregator solutions to various government and non-government agencies, both within and outside the scope of its parent company’s operations.

The PSU had been eyeing an entrance in the payments ecosystem since 2022. The entity was planning to approach RBI for an aggregator license in September 2022.

In its annual general meeting for FY22, IRCTC had plans to offer, market, build, design and carry out business operations of all kinds of electronic and virtual payment systems services, payment systems, prepaid and postpaid payment instruments, and payment gateway and aggregator services.

However, its application for a payment aggregation license was rejected by the RBI in February 2023.