6 Best Payments Bank In India
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In the dynamic landscape of India’s banking sector, payments banks have emerged as key players, revolutionizing the way individuals and businesses conduct financial transactions. With a focus on providing convenient, accessible, and digital-first banking solutions, these institutions have become instrumental in fostering financial inclusion and driving the nation towards a cashless economy.
In this article, we explore the best payments banks in India, delving into their unique features, services, and contributions to the evolving financial ecosystem. From pioneering digital platforms to extensive networks of banking points, these payments banks are at the forefront of redefining the banking experience for millions across the country.
- Best Payments Bank In India
- Airtel Payments Bank
- India Post Payments Bank
- Fino Payments Bank
- Jio Payments Bank
- NSDL Payments Bank
- Aditya Birla Idea Payments Bank
- What are Payment Banks and How Do They Work?
- What are the Documents Required to Open a Payment Bank Account?
- How to Open a Payment Bank Account?
Best Payments Bank In India
Airtel Payments Bank
Access Points
500,000
Special Features
Free personal accident insurance, and cashback on online transactions
Interest Rate on Saving
1% to 7%
Access Points
500,000
Special Features
Free personal accident insurance, and cashback on online transactions
Interest Rate on Saving
1% to 7%
Airtel Payments Bank is a leading digital financial service provider in India, established as a joint venture between Bharti Airtel and Kotak Mahindra Bank. Launched in November 2016, the bank operates with a focus on providing accessible and convenient banking solutions. With an extensive network of over 500,000 banking points spanning the country, Airtel Payments Bank offers various financial services, including savings accounts, current accounts, and mobile banking facilities.
One notable feature of Airtel Payments Bank is its extensive merchant network, with over 1.5 million merchants accepting payments through the platform. This wide acceptance ensures that users can utilize Airtel Payments Bank for various transactions, contributing to the bank’s goal of promoting digital financial inclusion. The bank leverages the extensive reach of Bharti Airtel, one of India’s largest telecom operators, to provide seamless and widespread access to its banking services.
- Services offered include savings accounts, money transfers, bill payments, recharges.
- Interest rates:
1. Balance up to INR 1 lakh is 2%
2. Above INR 1 lakh is 7%
- Some of the special features of Airtel Payments Bank are:
- It allows customers to open an account using their Aadhaar card and biometric verification, without any paperwork or minimum balance requirement.
- It provides a virtual debit card that can be used for online transactions and at over 1 million merchants across India.
- It enables customers to get cashback and rewards on various transactions, such as shopping, travel, entertainment, etc.
- It integrates with the Airtel Thanks app, which gives access to exclusive benefits like free subscriptions, discounts, and more.
India Post Payments Bank
Access Points
3,250 access
Special Features
Multiple payment options
Interest Rate on Saving
2%
Access Points
3,250 access
Special Features
Multiple payment options
Interest Rate on Saving
2%
India Post Payments Bank (IPPB) is a government-owned financial institution operating under the Department of Posts, Ministry of Communications. Launched in September 2018, IPPB serves as a crucial player in India’s efforts to promote financial inclusion. The bank operates through a vast network of over 650 branches and 3,250 access points strategically located across the country.
One of IPPB’s distinguishing features is its expansive reach, leveraging the extensive network of over 136,000 post offices throughout India. This infrastructure allows IPPB to provide accessible and inclusive banking services to even the remotest areas, contributing significantly to the government’s goal of bringing financial services to the unbanked and underserved populations.
IPPB offers a range of financial products and services, including savings accounts, current accounts, and mobile banking facilities. The emphasis on mobile banking aligns with the broader trend of digital financial services in the country, providing customers with the convenience of managing their finances through their mobile devices. Through its widespread network and digital initiatives, IPPB continues to contribute to the government’s vision of a financially inclusive and digitally empowered India.
- IPPB offers a range of products and services, such as savings and current accounts, money transfer, bill payments, insurance, and loans.
- Interest rates: 2% payable quarterly.
- IPPB also has some special features that make it stand out from other banks, such as:
- It has a wide network of over 1.55 lakh post offices and 3.01 lakh postmen and Gramin Dak Sevaks (GDS) who provide doorstep banking services to customers across the country.
- It leverages the Aadhaar-enabled Payment System (AePS) to enable customers to access their accounts using their Aadhaar number and biometric authentication.
- It has partnered with various financial institutions and service providers to offer third-party products and services to its customers, such as pension, mutual funds, insurance, etc.
- It has a digital platform that enables customers to access their accounts and services through mobile app, internet banking, SMS banking, missed call banking, etc.
Fino Payments Bank
Access Points
25,000
Special Features
Doorstep banking, and biometric authentication
Interest Rate on Saving
4% to 6.25%
Access Points
25,000
Special Features
Doorstep banking, and biometric authentication
Interest Rate on Saving
4% to 6.25%
Fino Payments Bank, established as a subsidiary of Fino Paytech Limited, has been a significant player in India’s banking sector since its launch in July 2017. With a commitment to providing accessible financial services, the bank has built a network that includes over 400 branches and 25,000 banking points spread across the country.
The range of financial products offered by Fino Payments Bank includes savings accounts, current accounts, and mobile banking services, catering to the diverse banking needs of its customers. One of the notable aspects of Fino Payments Bank is its extensive merchant network, with over 1 lakh merchants who accept payments through the bank.
- Fino Payments Bank is a new-age bank that offers a range of banking services to its customers, such as savings accounts, current accounts, fixed deposits, loans, and insurance.
- The interest rates are:
- up to INR 1 lakh is 4% p.a.
- over INR 1 lakh and up to INR 1 crore is 6.25% p.a.
- above INR 1 crore is 5% p.a.
- Some of the special features of Fino Payments Bank are:
- It has a wide network of over 500 branches and 50,000 banking points across
- India, making it accessible and convenient for customers.
- It provides a digital platform for customers to access their accounts, transfer funds, pay bills, recharge mobiles, and avail other services through the Fino BPay app or website.
- It offers a biometric-enabled debit card that can be used for cash withdrawals, purchases, and online transactions without the need for a PIN or OTP.
- It has a customer-centric approach that focuses on providing personalized and hassle-free banking solutions to its customers.
Jio Payments Bank
Access Points
5,000
Special Features
Access to SBI ATMs, and online banking services
Interest Rate on Saving
3.5% per annum, payable quarterly
Access Points
5,000
Special Features
Access to SBI ATMs, and online banking services
Interest Rate on Saving
3.5% per annum, payable quarterly
Jio Payments Bank, a collaborative venture between Reliance Industries Limited and the State Bank of India, has been a prominent entity in India’s banking sector since its launch in November 2016. The bank operates with the goal of providing accessible and technologically advanced financial services, leveraging the extensive reach of Reliance Industries and the banking expertise of the State Bank of India.
With a substantial presence, Jio Payments Bank has established over 5,000 banking points strategically located across India. These points serve as touchpoints for users to access a range of financial services offered by the bank, including savings accounts, current accounts, and mobile banking facilities. Jio Payments Bank again has a robust network of over 1 lakh merchants who accept payments through the bank.
- Jio Payments Bank is a joint venture between Reliance Industries and State Bank of India, offering digital banking services to customers across India.
- Jio Payments Bank offers an attractive interest rate of 3.5% per annum, payable quarterly per annum on its savings accounts, which is higher than most other payments banks in the country.
- Jio Payments Bank also has some special features that make it stand out from its competitors, such as:
- No minimum balance requirement or monthly charges for opening and maintaining a savings account.
- Free and unlimited money transfers to any bank account in India using the JioMoney app or UPI.
- Access to over 70,000 Jio ATMs and cash points across the country, where customers can withdraw cash using their mobile number and OTP.
- A range of value-added services such as bill payments, recharges, insurance, investments, loans and more, available on the JioMoney app or through Jio’s partner network.
- A secure and convenient biometric authentication system for verifying customers’ identity and transactions.
NSDL Payments Bank
Access Points
3,000
Special Features
Free debit card and cheque book, unlimited free transactions at NSDL ATMs and partner bank ATMs, and more
Interest Rate on Saving
2.5% to 5%
Access Points
3,000
Special Features
Free debit card and cheque book, unlimited free transactions at NSDL ATMs and partner bank ATMs, and more
Interest Rate on Saving
2.5% to 5%
NSDL Payments Bank, a subsidiary of National Securities Depository Limited, was introduced in November 2016, marking the expansion of NSDL’s services into the banking sector. With an extensive presence, the bank operates through over 100 branches and 3,000 access points throughout India, offering a range of financial services including savings accounts, current accounts, and mobile banking facilities. Notably, NSDL Payments Bank has cultivated a robust network of over 1 lakh merchants who facilitate transactions and payments through the bank.
Beyond its banking endeavors, NSDL is a key player in the securities depository domain, boasting more than 2.80 crore demat accounts. Commanding a significant market share, NSDL holds over 89% of the market share in the value of demat assets. Its influence extends widely, with demat account holders spanning more than 99% of pin codes in India and reaching 189 countries globally. NSDL plays a crucial role in the settlement process in the Indian securities markets, contributing to more than 89% of the total value of assets held in demat form in the country.
1. Per annum interest of INR 1 lakh is 2.5%
2. On balance above INR 1 lakh is 5%
- Special features such as free ATM transactions, instant money transfer, bill payments, mobile recharge, and online shopping
- A user-friendly mobile app and website that lets you access your account anytime, anywhere
- A network of over 20,000 branches and business correspondents across India, where you can open an account, deposit cash, and withdraw money.
- A secure and reliable platform that is backed by NSDL, India’s largest depository
Aditya Birla Idea Payments Bank
Access Points
Over 100,000 access points
Special Features
It provides cashback and discounts on certain transactions such as mobile recharges, bill payments, and online shopping
Interest Rate on Saving
7.25% per annum
Access Points
Over 100,000 access points
Special Features
It provides cashback and discounts on certain transactions such as mobile recharges, bill payments, and online shopping
Interest Rate on Saving
7.25% per annum
Aditya Birla Idea Payments Bank offers several special features, including the ability to open a zero-balance account with no maintenance fees. The bank also provides cashback and discounts on certain transactions, such as mobile recharges and bill payments. Additionally, Aditya Birla Idea Payments Bank has partnered with several merchants to provide exclusive deals and offers to its customers.
Aditya Birla Idea Payments Bank has a wide network of access points, including branches, banking points, and ATMs. The bank also provides mobile and internet banking facilities, allowing customers to access their accounts from anywhere.
- Bank offers a zero-balance account, which means customers can open an account without any minimum balance requirement.
- The bank offers an interest rate of 7.25% per annum on savings accounts
- Aditya Birla Idea Payments Bank provides cashback and discounts on certain transactions such as mobile recharges, bill payments, and online shopping.
- Wide Network of Access Points: The bank has over 100,000 access points across India, including branches, banking points, and ATMs.
- Aditya Birla Idea Payments Bank has partnered with several merchants to provide exclusive offers and deals to its customers.
What are Payment Banks and How Do They Work?
Payment banks are a distinct category of financial institutions introduced by the Reserve Bank of India (RBI) with the aim of expanding financial inclusion and fostering digital transactions in the country. These banks operate with a focus on providing basic banking services to the unbanked and underbanked population, leveraging technology to offer convenient and accessible financial solutions. Payment banks, unlike traditional banks, are not authorized to provide lending or credit services. Instead, they primarily offer the following services:
Savings Accounts: Payment banks are permitted to open savings accounts for customers. These accounts often have limitations on the maximum deposit amount, and the balance in these accounts cannot exceed a specified threshold.
Current Accounts: Payment banks can also offer current accounts to customers, facilitating transactions for businesses and individuals.
Mobile Banking: With a strong emphasis on digital transactions, payment banks provide mobile banking services. This includes features such as fund transfers, bill payments, and mobile recharges through mobile applications.
Remittance Services: Payment banks play a crucial role in enabling domestic remittance services. Individuals can use these banks to send and receive money, especially in regions with limited access to traditional banking.
Debit Cards and ATMs: Payment banks issue debit cards that can be used for transactions at ATMs, point-of-sale (PoS) terminals, and online platforms. However, they do not offer credit card services.
Third-Party Services: Payment banks often collaborate with third-party service providers to expand their offerings. This can include the sale of insurance and mutual fund products.
What are the Documents Required to Open a Payment Bank Account?
The specific document requirements for opening a payment bank account can vary slightly depending on the policies of the individual payment bank and regulatory guidelines. However, here is a general list of documents commonly required:
Proof of Identity (PoI):
- Aadhar card
- Passport
- Voter ID
- Driver’s license
- Government-issued photo identity card
Proof of Address (PoA):
- Aadhar card
- Utility bills (electricity, water, gas) in the applicant’s name
- Rental agreement
- Bank account statement
- Passport
Passport-size Photographs: Usually, a couple of recent passport-sized photographs are required for the account opening process.
PAN Card (Permanent Account Number): PAN card is often a mandatory requirement for opening a payment bank account.
Mobile Number Linked to Aadhar: Since payment banks focus on digital transactions and mobile banking, having a mobile number linked to your Aadhar card is often a crucial requirement.
Signature Proof: Some banks may ask for a signature proof, which could be verified against the signature on the account opening form.
Occupation and Income Details: Depending on the bank’s policies, you may be required to provide details about your occupation and income source.
KYC (Know Your Customer) Form: Completing the KYC form is a standard procedure for opening any bank account, including payment bank accounts.
How to Open a Payment Bank Account?
Opening a payment bank account typically involves a straightforward process. Here are general steps that can guide you through the account opening procedure:
Choose a Payment Bank: Decide on the payment bank where you want to open an account. Consider factors such as services offered, fees, accessibility, and digital features.
Visit the Nearest Access Point or Use the Mobile App/Website: Payment banks often have various access points, including physical branches, banking agents, and online platforms. Visit the nearest access point or use the official mobile app/website of the payment bank.
Fill Out the Account Opening Form: Obtain the account opening form, either in physical or digital format. Fill in the required details accurately. This may include personal information, contact details, and nominee details.
Submit KYC Documents: Provide the necessary KYC documents, which typically include proof of identity (PoI), proof of address (PoA), passport-size photographs, and your PAN card. Make sure to carry both original and photocopies of these documents.
Biometric Verification (if applicable): Some payment banks may require biometric verification, especially if Aadhar-based services are involved. This may include fingerprint scanning or other biometric authentication methods.
Mobile Number Verification: Verify your mobile number, as it is often linked to your payment bank account. This may involve receiving an OTP (One-Time Password) on your registered mobile number.
Deposit Initial Amount (if required): Some payment banks may require an initial deposit to activate the account. Confirm the specific requirements with the bank and deposit the necessary amount.
Receive Account Details: Once the account opening process is complete, you will receive account details such as the account number and other relevant information.
Set Up Mobile Banking (if applicable): If the payment bank offers mobile banking services, download the official mobile app and set up your account for convenient digital transactions.
Collect Your Debit Card (if applicable): If a debit card is issued as part of the account, collect it from the bank or wait for it to be delivered to your registered address.
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