Shares of Indian Railway Catering and Tourism Corporation (IRCTC) climbed more than 2% on 6 August after the Reserve Bank of India (RBI) approved its subsidiary’s operation as an online payment aggregator.  

The Reserve Bank of India (RBI) has granted ‘In-Principle’ authorisation 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, according to a company filing on Tuesday.

With the central bank’s approval, IRCTC Payments will be able to facilitate online transactions between customers and merchants. The license also allows the corporation to combine client payments and settle them with merchants after a certain time period.

According to sources, the public sector undertaking (PSU) also issued a tender in April of this year to hire a technical service provider to help deliver end-to-end payment services.

The Indian government accorded the PSU ‘Navratna’ status earlier this year. The Navratna designation is awarded to public sector enterprises that demonstrate exceptional financial and market success. This acknowledgement increases their autonomy and financial authority.

At 12:32 pm, the shares of IRCTC were trading 0.40% higher at Rs 729.15 on NSE.

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