8 Best Payments Bank in India

Payment Banks is a concept introduced by the Reserve Bank of India. Reserve Bank of India approved 11 entities to establish Payment Banks. The banks come under the regulation of the Apex Entity or the Head of the Central Bank of India.

Payment banks are different from normal banks. The Payment Banks can accept deposits up to Rs 1 Lakh. Such banks can’t issue credit cards, and the NRIs can’t open an account with the Payment Banks.

The Payment Banks have a restriction to establish subsidiary units for undertaking non-banking financial services.

The Payment Banks cannot either avail loan or ledge loan to the customers. These types of banks operate savings as well as current accounts. The banks also issue ATM/Debit cards, net banking, and mobile-banking services.

Top 8 Payment Banks in India 

1. Aditya Birla Payments Bank

Aditya Birla Payments Bank is the adventure of Aditya Birla Group. The Payment Bank established by Aditya Birla Multinational Company with Idea Cellular Ltd in 2018, is the 4th Payments Bank.

This Payments Bank earlier operated as Idea Mobile Commerce Services Ltd under Idea Cellular Ltd. 

2. Airtel Payments Bank

Airtel Payments Bank is a subsidiary of Bharti Airtel. Bharti Airtel is the first Indian company to receive the license to set up a Payments Bank.

Airtel Payments Bank is the first Live Payments Bank in the country that initiated its services in 2016. The Airtel Payments Bank is a joint venture of Bharti Airtel Ltd and Kotak Mahindra Bank Ltd.

3. India Post Payments Bank

The Department of Posts and Ministry of Communication operate India Post Payments Bank, and the Government of India owns the bank.

The Government of India aims to provide a house to house banking services utilizing post offices across the country as access points.

India Post Payments Bank initiated its nationwide services in 2018.

best payments bank in india

4. FINO Payments Bank

FINO Payments Bank was incorporated in 2017, but the company initiated its financial services meeting the country’s banking needs in 2006.

FINO Payments Bank is the first bank in the category that went LIVE nationwide with 410 branches and 25000 banking points.

The parent company FINO Paytech Limited owns and operates the Payments bank and aims to serve with the exclusive business model.

5. NSDL Payments Bank

National Securities Depository Limited or NSDL is the first and largest depository in India. NSDL obtained the license from Apex bank to set up Payments Bank.

It aims to deliver unmatched digital banking services. NSDL commenced Payments Bank operations in 2018.

6. Paytm Payments Bank

Paytm is an e-commerce payment system as well as a digital wallet company operating in India.

One97 Communications is the parent company operating Paytm. Paytm launched PaymentsBank operations in 2017.

7. Jio Payments Bank

Reliance Industries launched Jio Payments Bank and started its operations in 2018. Jio Payments Bank is a joint venture of Reliance Industries and the State Bank of India.

Jio Payments Bank is the sixth Payments Bank that commenced its operations.

8. Vodafone M-Pesa Payments Bank

Vodafone M-Pesa is a mobile-based Payments Bank offering money transfer, micro-financing, and finance services.

It is one of the successful mobile phone-based financial service providers.


RBI approved 11 entities in the initial phase, but companies like Cholamandalam Distribution Services, TechMahindra, and Sun Pharmaceuticals surrendered the licenses.

The concept of the Payments Bank is a great initiative in the country. The regulations for the Payments Bank will change with time, and the operating companies will give their best efforts to meet the growing needs of the customers.


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