IRCTC payment aggregator RBI nod marks a significant fintech milestone: IRCTC Payments Ltd., a wholly‑owned subsidiary of IRCTC, has secured in‑principle approval from the Reserve Bank of India to operate as an online payment aggregator under the Payment and Settlement Systems Act, 2007. The RBI letter is dated August 4, 2025, and IRCTC confirmed receipt on August 5
🏛 Background & Regulatory Journey
IRCTC Payments was incorporated in February 2024, and the application for payment aggregator status was first submitted in December 2024. After addressing RBI’s queries, the in‑principle approval has finally arrived. The previous application had been rejected by the RBI in February 2023
⚙ What This Approval Enables
- IRCTC Payments can now act as a Payment Aggregator for cross-border (PA-CB) and domestic transactions.
- It enables pooling of funds from customers and settlements to merchants across UPI, net banking, wallets, credit/debit cards, and more
- The final license is expected within approximately one year from now, contingent on compliance and operational readiness
📈 Impact on IRCTC & Broader Fintech Strategy
Strategic Diversification
With this financial services push, IRCTC aims to go beyond ticketing and catering. Its i‑Pay platform currently processes ~₹114.5 crore in revenue (FY24), growing ~19% YoY. It also supports loyalty programs, prepaid instruments, and Bharat Bill Payments
Strengthening Fintech Capabilities
Analysts like Investec see the licensure as a catalyst for fintech-led revenue growth, boosting competitiveness against Razorpay, PayU, BillDesk, and others
Stock Response & Market Sentiment
Post-announcement, IRCTC’s share price rose ~2% intraday (to ₹743), reflecting positive sentiment; analysts believe there’s potential upside to ₹1,200/share. Despite short-term volatility, IRCTC stock has delivered ~173% returns over the last five years
🔍 Why This Matters
| Area | Significance |
|---|---|
| New Revenue Stream | Payment aggregation could add high-volume, fintech-based earnings beyond traditional ticketing and catering. |
| Market Expansion | Gateway to processing government payments, railway ecosystem transactions, and third-party merchant flows. |
| Competitive Edge | Positions IRCTC alongside major fintech aggregators disrupting India’s payment infrastructure. |
| Investor Confidence | Market response underscores expectations of long-term monetization and diversification of earnings. |
🔮 Looking Ahead
With in‑principle approval now secured, IRCTC Payments will focus on regulatory compliance, tech integration, and scaling operations. Final approval is anticipated within a year, after which IRCTC could become a major PSU entrant into India’s fintech payments landscape. Over time, this license may significantly boost both profitability and value creation.
