IRCTC Payments, the payments subsidiary of the Indian Railway Catering and Tourism Corporation (IRCTC), has received in-principle approval from the Reserve Bank of India (RBI) to operate as an online payment aggregator.
The approval, granted under the Payment and Settlement Systems Act of 2007, represents a strategic move for IRCTC as it looks to deepen its presence in India’s rapidly evolving FinTech ecosystem.
This regulatory green light allows IRCTC Payments to process and settle digital payments not just for its extensive railway ticketing operations but also for a broad range of government and private sector services.
With the ability to support transactions through UPI, credit and debit cards, net banking, digital wallets, and autopay services, the company is aiming to provide a seamless and scalable digital payment infrastructure for millions of Indian consumers.
IRCTC i-Pay, the digital payments platform under IRCTC Payments, already plays a crucial role in managing a significant share of India’s railway ticketing volume.
In the financial year 2023–24, the platform facilitated over 4,500 lakh ticket transactions, totalling more than Rs 61,700 crore.
This scale, combined with its new status as a payment aggregator, positions IRCTC Payments to become a formidable player in the Indian digital payments space.
Established in February 2024, IRCTC Payments was formed with a clear goal of expanding IRCTC’s digital and financial services footprint.
With RBI’s approval, the company plans to extend its offerings to include merchant payment collection, gateway integration, loyalty and rewards program management, and prepaid card services.
It also aims to provide solutions for sectors well beyond railways, signalling a diversification of revenue streams and a broader industry reach.
The news has been welcomed by investors, with IRCTC’s share price rising by over 1 per cent shortly after the announcement. Financially, IRCTC i-Pay has already shown strong momentum, recording a 19 per cent increase in revenue, reaching Rs 114.54 crore in FY24.
This growth is expected to accelerate as IRCTC strengthens its foothold in the competitive digital payments market, going head-to-head with established players such as Razorpay, BillDesk, PayU, Cashfree, and CCAvenue.
Though the current approval is in-principle and subject to the fulfilment of specific regulatory conditions before final authorisation, industry observers view it as a major milestone.
It reflects the central bank’s trust in IRCTC’s operational capabilities and the government’s broader intent to support homegrown digital payment solutions at scale.
As India continues to push toward a digitally empowered economy, IRCTC Payments is well-positioned to become a key player in shaping the future of how transactions are made and managed, blending public sector reliability with the agility of modern FinTech innovation.
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