IRCTC gets RBI's in-principle nod to act as online payment aggregator

Through the subsidiary, IRCTC is hoping to diversify into the payment gateway and payment aggregator business which it hopes will streamline its e-ticketing services.

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26 Aug, 2025 12:21

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The RBI has granted an in-principle approval to IRCTC Payments, a subsidiary of online railway ticketing platform IRCTC, to act as an online payment aggregator, the company informed through an exchange filing, sending the shares higher on August 6 by over a percent.

"..Reserve Bank of India (RBI), vide its letter dated August 04, 2025 (received via email dated August 05, 2025), has granted ‘In-Principle’ authorization 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 statement said. IRCTC Payments is a wholly owned subsidiary of IRCTC and was formed to cater to the payment aggregator business.

Post the in-principle approval, IRCTC will have to wait for the final approval, which the company said in June could take around a year. IRCTC Payments was incorporated in February 2024 as a wholly owned subsidiary, and the parent entity had submitted application seeking in-principle approval from RBI in December 2024, post which certain clarification was sought, which the company had provided.

Brokerage Investec in a recent note said it sees a 66 percent upside in the stock and has recommended a Buy call with a target price of Rs 1200 per share.

Through the subsidiary, IRCTC is hoping to diversify into the payment gateway and payment aggregator business which it hopes will streamline its e-ticketing services.

IRCTC i-Pay, the payment aggregator facilitates payments through all modes such as internet banking, debit and credit card, wallets, UPI and Autopay, In FY24, i-Pay generated a revenue of Rs 114.54 crore at a growth of 19.33 percent compared to a year ago. The subsidiary also issues pre-paid instruments such as cash and gift cards, manages coupons and loyalty cards, and operates as a Bharat bill payment unit. The entity also develops payment processing software and fintech solutions to support e-commerce activities of the parent.

Q4FY25 saw IRCTC's internet ticketing revenue rise to Rs 372.5 crore at a strong 8.78 percent on-year growth, with a record revenue milestone of Rs 1,269 crore for the company.