IRCTC share price witnessed a modest recovery after receiving ‘In-Principle’ approval from the Reserve Bank of India (RBI) for its subsidiary, IRCTC Payments, to operate as an online payment aggregator. Despite recent underperformance, experts suggest this regulatory milestone could signal a positive turning point for the stock.
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) saw a modest rebound on Wednesday, climbing over 2% after a regulatory breakthrough. The Reserve Bank of India (RBI) granted ‘In-Principle’ authorization to IRCTC’s wholly owned subsidiary, IRCTC Payments, to function as an Online Payment Aggregator under the Payment and Settlement Systems Act, 2007.
The stock rose as much as 2.43% during intraday trade to hit ₹743.60 on the BSE, even as broader market sentiment remained cautious.
This regulatory nod marks a significant step in IRCTC’s diversification strategy beyond its core ticketing and catering services, positioning it to participate directly in India’s fast-growing digital payments ecosystem.
IRCTC, a key public sector enterprise (PSE) in India’s railway infrastructure, stated in a regulatory filing that it received the RBI’s in-principle nod via email on August 5, 2025. This development enables its fintech arm, IRCTC Payments, to initiate the formal process of building and offering payment gateway services under regulatory compliance.
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Despite this positive update, the PSU stock has seen persistent weakness. IRCTC’s share price has declined approximately 7% over the last month, 1% over three months, and nearly 8% on a year-to-date basis. Over the past 12 months, the stock has lost about 21% of its value. However, from a longer-term perspective, the stock has delivered 173% returns over the last five years, making it a multibagger for long-term investors.
Financial experts view this RBI approval as a strategic trigger that could re-rate the stock in the medium term. Analysts point out that the diversification into digital payments could unlock new revenue streams, reduce dependency on ticketing commissions, and strengthen IRCTC’s positioning in the fintech space.
Additionally, the move aligns with the government of India’s broader push toward digital financial inclusion and greater digital infrastructure in public services. As the subsidiary gears up for full authorization, the focus will now shift to IRCTC Payments’ execution capabilities, technological rollout, and market positioning in a competitive digital payment landscape.
While the stock has underperformed in the near term, the RBI authorization is seen as a structural positive that could attract long-term investors seeking exposure to India’s digital economy through a government-backed platform.
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