- Reserve Bank of India granted IRCTC Payments Ltd in-principle authorisation as a payment aggregator
- The authorisation comes under the Payment and Settlement Systems Act, 2007
- IRCTC Payments Ltd is a wholly owned subsidiary of Indian Railway Catering and Tourism Corp
The Reserve Bank of India has granted an in-principle authorisation to IRCTC Payments Ltd., a wholly owned subsidiary of Indian Railway Catering and Tourism Corp., to operate as an online payment aggregator.
The decision, via a letter dated Aug. 4, comes under the Payment and Settlement Systems Act, 2007, according to an exchange filing on Tuesday.
This move aims to help Indian Railways' ticketing and hospitality arm in tapping into railway and government-linked transactions and will cash in additional revenue for the public sector undertaking by mediating between merchants and customers through facilitating payments.
An application by IRCTC seeking licence for payment aggregation services was rejected by the RBI back in February 2023.
IRCTC Payments came into being last year in a bid by its parent company to expand its horizons. The intended goal for the arm was to deliver payment aggregator solutions within and outside IRCTC to various government and non-government agencies.
In April this year, the company floated a tender to get a technical service provider as an assistance for its attempt to provide end-to-end payment services.
Currently, IRCTC already has its own payment gateway in place by the name of 'iPay', which caters to its own customer base.
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