Payments Banks are formed by the Reserve Bank of India (RBI) to ensure financial inclusion by providing payments and remittance services to an underserved population who have little or no banking access. These banks would not only assist these underserved populations of India but also provides them easy finance solutions to meet their requirements. Therefore, in this post, I have compiled a list of payment banks in India 2021.
Table of Contents
What are Payment Banks in India?
Payment Banks is a new model of banks in India conceptualized by RBI. These banks function differently than conventional banks in terms of features and services. People and small businesses who are underserved can visit such banks and open savings accounts and current accounts in these banks.
Payments payment banks of India cannot issue loans and credit cards. However, they can issue ATM/Debit cards. They can also provide online banking and mobile banking facilities.
The digital payment banks in India can also make payments on behalf of companies and people. So it could be said that the future of payment banks in India is bright! The first payment bank established was Airtel Payment Bank.
Objectives of Payments Banks in India
Payments banks in India are set up with the cause to ensure that all sectors of society are equally involved in financial services offered by the banks. Be it providing payments or financial assistance to migrant workers or creating saving accounts for small businesses, the focus of payment banks is the inclusion of all.
As per the statistics by the Reserve Bank of India, about 60% of the total Indian population are not connected with any banks or receiving no financial assistance. Thus, Payment Banks were set up to bridge the gap between the different sections of the country.
How are these payment banks different from other banks?
1. By using the word “payments” in their titles to stand apart and look different from all the other banks available in our country.
2. There is a total six number of payment banks in India that are sole to uplift the underserved.
3. Payment Banks always have to comply with the basic guidelines set by the Reserve bank of India, even if it becomes a business representative of any other bank.
4. With permission from The Reserve Bank of India, payment banks can also get into partnership with other commercial banks to avail pension plans and other similar products.
5. Just like any other bank, payment banks of India would also have to deposit a certain amount with the Regional Bank of India as Cash Reserve Ratio.
6. Non-Resident Indians cannot send money to Payment Banks as they do not come under the citizenship clause of the country.
Establishment of Payments Banks in India
The Reserve Bank of India had decided to grant “in-principle” approval to 11 applicants to set up payment banks under the Guidelines for Licensing of Payments Banks issued on November 27, 2014. Here is the list of payment banks in India RBI.
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List of Payments Banks in India 2021
Currently, the following total payment banks in India are operating.
1. Airtel Payments Bank Ltd
2. India Post Payments Bank Ltd
3. Fino Payments Bank Ltd
4. Paytm Payments Bank Ltd
5. Jio Payments Bank Ltd
6. NSDL Payments Bank Limited
Payments Banks in India List
Let us discuss each of these top payment banks in India in detail:
1. Airtel Payments Bank Limited
Launched in January 2017, Airtel Payment Bank is by India’s largest telecom provider, Bharti Airtel. It was launched as a support to the government’s project digital India campaign to make the economy free-flowing and cashless. Airtel Payments Bank Limited is one of the best payment banks in India.
You can open a savings account at any of their 5 lakh+ banking points. Earn 3% interest rate with free personal accident insurance cover of Rs.1 lakh. You will get an online debit card and you can deposit cash at any Banking Point in your nearby area.
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2. India Post Payments Bank Limited
The India Post Payments Bank was launched on September 1, 2018, to provide a complete suite of banking services. This bank is backed and operated by India Post. IPPB has enabled over 1.36 lakh India post offices including more than 1.13 lakh are located in rural India.
The network of IPPB is widely spread all over the country with over 3 lakh employees working every single day. You can open zero balance savings account with IPPB. The India Post Payments Bank Limited had acquired about 4.0 crore customers by December 2020.
IPPB’s doorstep banking and financial services are available to weaker sections of society. Postmen and Gramin Dak Sevaks have been provided smartphones and biometric devices to provide doorstep banking services.
Click here to know more about IPPB.
3. Fino Payments Bank Limited
Founded on April 4, 2017, Fino Payment Bank has made the entire banking process a lot simpler for common men. The Fino Payment Bank Savings account itself has multiple advantages. If you have an account in Fino Payment Bank, you know that it is in safe hands.
They have services present in more than 25000 banking points, including 28 Indian states and around 500 districts. The bank has a record of reaching out and impacting the lives of over 100 million customers over the years.
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4. Paytm Payments Bank Limited
Who doesn’t know Paytm in India? The brand name has expanded incredibly since the Digital India Campaign. Today, almost every smartphone user uses Paytm for financial transactions.
Paytm’s payment bank yet another development where a unique passcode availed to every customer. This unique code ensures that their money well-protected in the Paytm bank. And the best part?
You can open a savings account with Paytm Payments Bank without any account opening charges or minimum balance requirements. You can keep up to Rs.2 lakh of deposits and enjoy several benefits. It lets you receive 2.75% per annum interest on your deposits and paid every month.
5. NSDL Payments Bank Limited
Founded in October 2018, NSDL jiffy is the face of NSDL Payments Bank. It is one of the best payment banks in India which provides faster and smoother transactions.
Overall, it just makes one banking experience a lot better. The purpose of NSDL Payments Bank is to provide seamless banking services to all Indians, be it underserved or privileged.
Click here to know more !
6. Jio Payments Bank Limited
Jio has to be that one brand that appears everywhere. The type of monogamy that Jio has over the market is remarkable. Jio Payments Bank owned by Reliance Industries Limited.
In 2016, the Reserve Bank of India has provided “in-principle” approval to Reliance Industries Limited to create their Payment Bank. Jio Payments Bank started operating in 2018.
Enjoy banking services through your phone app or at their banking outlets. You can open your savings account in few minutes without any paperwork. Moreover, there is no minimum balance requirement for this account.
Which payment bank is best in India?
Choosing one name from these six banks is very difficult. All are best and each one is providing many services to their customers. you can choose any one as per your own requirement.
Final Thoughts
The above mentioned is the list of payments banks in India. With the initiative of creating such a thoughtful system, the establishment of Payments Banks in India will not only help the needy but will ensure financial inclusion of all the sections of the country. It will strengthen the weaker section, widen the financial learning of every citizen of the country. This will ultimately contribute to the economic development of the country.
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