New Delhi: In a strategic breakthrough for the Indian Railways’ digital arm, the Reserve Bank of India (RBI) has granted In-Principle approval 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.
New Avenue for Revenue and Digital Expansion
This approval enables IRCTC Payments Limited to process online transactions by acting as an intermediary between merchants and customers, significantly expanding IRCTC’s footprint in India’s digital payments ecosystem. It also opens a new stream of revenue for IRCTC beyond ticketing and tourism.
The development marks a turnaround from 2023, when IRCTC’s application for a payment aggregator license was rejected by the RBI. With this fresh nod, the PSU subsidiary is poised to enhance financial service delivery across India’s vast railway user base and beyond.
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About IRCTC
The Indian Railway Catering and Tourism Corporation (IRCTC) is a Mini Ratna PSU under the Ministry of Railways. It provides catering, tourism, and online ticketing services for the Indian Railways. The formation of IRCTC Payments Limited expands its operations into the digital payments domain.
About the Reserve Bank of India
The Reserve Bank of India (RBI), India’s central banking institution, regulates the issuance and supply of the Indian rupee and oversees the country’s monetary policy. It plays a pivotal role in financial supervision, macroeconomic stability, and banking sector reforms. The RBI also issues regulatory directions to ensure robust governance and risk management among financial institutions.
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