In India, there are seven payments banks operational as of now. A payments bank is a special kind of financial institution that was created in order to promote financial inclusion in the country. Payments banks can accept deposits up to ₹200,000 per customer and offer services such as remittances, money transfers, and payments. These banks cannot provide loans and credit cards.
In India, what exactly are Payment Banks?
Payment banks in India are specialized banks that provide basic banking services such as deposits and withdrawals, money transfers, and payments. These banks cannot issue loans or credit cards. The main objective of these banks is to promote financial inclusion in the country by providing simple banking services to those who do not have access to traditional banking channels.
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Objectives of Payments Banks in India
The Reserve Bank of India issued the final guidelines for payments banks in August 2015. The main objectives of setting up payments banks in India are:
- To increase financial inclusion by providing small savings accounts and payment services to low-income households and migrant workers
- To promote digital banking in the country
- To provide an alternate delivery channel for government benefits
Benefits of Payments Banks in India
Some of the benefits of payments banks in India are:
- Convenient and easy to use: Payments banks are convenient and easy to use, especially for those who do not have access to traditional banking channels.
- Safe and secure: Payments banks are safe and secure as the Reserve Bank of India regulates them.
- Affordable: Payments banks offer essential banking services at very affordable prices.
- Accessible: Payments banks are easily accessible as they have an extensive network of branches and ATMs across the country.
List of Payments Banks in India
As of 2022, there are seven payments banks operational in India. These are:
- Airtel Payments Bank
- Fino Payments Bank
- Jio Payments Bank
- India Post Payments Bank
- NSDL Payments Bank
- Paytm Payments Bank
- SBI Payment Services Pvt. Ltd
Payments Banks in India List
Let’s take a closer look at each of India’s leading payment Banks:
1). Airtel Payments Bank
Airtel Payments Bank is a joint venture between Bharti Airtel Limited and Kotak Mahindra Bank. It was launched in 2017 and is one of the leading payments banks in India.
2). Fino Payments Bank
Fino Payments Bank is a subsidiary of the FINO group, which is a leading player in the Indian financial inclusion space. The bank was launched in 2017 and offered a range of banking products and services.
3). Jio Payments Bank
Jio Payments Bank is a new entrant in the banking sector in India. It is a subsidiary of Reliance Industries Ltd. Jio Payments Bank started its operations on 3 April 2018 with two pilot branches in Mumbai and Delhi. Setting up Jio Payments Bank aims to facilitate digital payments and further expand the reach of digital banking services in India. Jio Payments Bank has a tie-up with SBI, HDFC Bank, Axis Bank, ICICI Bank, and other leading banks in India to provide multi-bank ATM services across the country. Jio Payments Bank offers a bouquet of services, including savings and current accounts, money transfers, direct benefit transfers, bill payments, and Merchant.
4). India Post Payments Bank
India Post Payments Bank (IPPB) is a public sector bank set up by the Indian government in 2018. It is headquartered in New Delhi and has over 3 lakh employees. A wide variety of banking products and services are available via India Post Payments Bank, including savings and current accounts, money transfers, direct benefit transfers, bill payments, and other services.
5). NSDL Payments Bank
With over 400 million account holders, NSDL Payments Bank is India’s most significant payments bank. The bank offers a wide range of services, including mobile banking, ATM withdrawals, and money transfers. In addition, NSDL Payments Bank offers several unique features, such as QR code payments and in-app payments. The bank has also partnered with major e-commerce platforms like Amazon and Flipkart to provide customers with convenient payment options. Thanks to its innovative products and partnerships, NSDL Payments Bank has quickly become the go-to bank for Indian consumers.
6). Paytm Payments Bank
If you’re looking for a payment bank that gives you the best bang for your buck, look no further than Paytm Bank. From its low fees to its high-interest rates, Paytm Bank offers many advantages for its customers. In addition, its customer service is excellent, and it has a vast network of ATMs and branches across India. As a result, Paytm Bank is one of the best payment banks in India.
7). SBI Payment
SBI Bank is one of the leading banks in India, with a vast network of branches across the country. It offers a wide range of banking products and services to its customers, including savings accounts, Fixed Deposits, current accounts, personal loans, home loans, credit cards, and more. The bank also has a mobile app and an online banking platform that offer customers convenient and easy access to their banking products and services.
In terms of customer satisfaction, SBI Bank ranks among the top banks in India. Customers have consistently given the bank high ratings for its service quality, customer service, transparency, and value for money. In addition, the bank has a strong focus on safety and security, which is another area where it scores high.