Top Payment Banks in India

Payment banks are specialized banks that majorly focus on providing basic banking services, especially for underbanked and unbanked populations of India. The Reserve Bank of India (RBI) introduced these banks for promoting financial inclusion by authorizing them to offer deposit, payment and remittance services. However, such banks cannot issue credit cards or loans. 

Securing a payment bank license requires the applicant to initially register as a public limited company under the Companies Act 2013, followed by submitting an application to the Reserve Bank of India (RBI) through Form III. In this blog post, we shall discuss the top payment banks in India. 

List of Top Payment Banks in India 2025

Provided herein is the list of top payment banks in India, as of 2025:

1. India Post Payments Bank

Date of Establishment: 1 September 2018

India Post Payments Bank, abbreviated as IPPB, was established under the Department of Post, Ministry of Communication. It is a wholly owned entity of the Government of India and is one of the top payment banks in India. On 30 January, IPPB was launched as a pilot project in Ranchi and Raipur.

The Union Cabinet, in August 2018, approved the cost of a whopping Rs. 14.35 billion for the establishment of IPPB. The bank’s first phase, with over 650 branches and 3,250 post offices as access points, commenced on 1 September 2018. 

More than ten thousand postmen were a part of the initial phase. By September 2020, the bank had reached approximately 35 million customers and grew to around 40 million by December 2020. In January 2022, IPPB surpassed 80 million customers.

In June 2025, IPPB received the Union Finance Ministry’s Digital Payments Award for 2024-25. The recognition was given for its efforts in expanding access to cashless transactions and promoting financial inclusion across the nation.

2. Airtel Payments Bank

Date of Establishment: 23 November 2016

Airtel Payment Bank (APB) is one of the best payment banking institutions in India. It was established on 23 November 2016, making it India’s first payment bank upon approval of the Reserve Bank of India. 

APB began as a 80:20 partnership between Bharti Airtel and Kotak Mahindra Bank. However, in August 2021, Kotak Mahindra Bank sold its stake to Bharti Enterprises. The Bharti Group of Companies owns 99.9% of the Bank's share capital as of December 31, 2021. 

Through a wide network of banking locations, APB seeks to offer inclusive and easily accessible banking services, especially in underserved and rural areas. The bank uses Airtel's wide distribution network to provide a range of services, including insurance, digital payments and savings accounts.

3. Fino Payments Bank

Date of Establishment: 23 June 2007

Fino Payments Bank is yet another bank in our list of payment banks in India. For millions of hardworking Indians, this bank is one of the top 10 payment banks in India. It understands consumers and their needs from a bank. It is Fino’s continuous endeavor to provide customers with an unmatched banking experience through simple products that can be accessed anytime from anywhere.

It has presence in 90% of India’s districts with over 724,671 banking outlets, 54 Bank Branches and 130 Customer Service Points. Investors of FPB include ICICI Bank, Blackstone, BPCL and IFC.

Fino is a publicly listed company. It offers a variety of financial products and services, including savings and current accounts, debit cards, insurance and loan referrals. It has a strong focus on technology and a vast network of banking outlets across India. 

4. Jio Payments Bank

Date of Establishment: 3 April 2018

Jio Payment Bank Limited (JPBL) is a popular payment bank in India. It commenced operations in 2018 and is a subsidiary of Jio Financial Services. JPBL was established in November 2016 with the goal of providing safe, easy and inclusive banking services to all Indians after receiving approval from the Reserve Bank of India under the Banking Regulation Act 1949. It is a member of the Jio Financial Services Limited (JFSL) group, is leading the charge to promote financial inclusion via the use of state-of-the-art technology, smooth digital interactions and a customer-first philosophy. 

From zero-balance savings accounts, UPI-enabled payments and creative sweep accounts that maximize idle funds to crucial services like Domestic Money Transfer (DMT), Aadhaar-enabled Payment System (AePS) and Bharat Bill Payment System (BBPS), Jio Payment Bank’s suite of products is made to satisfy the various financial needs of both individuals and businesses.

It is constructing a strong and future-ready banking ecosystem based on trust, convenience and digital excellence, all guided by JFSL's aim of streamlining finance and improving the lives of its clients. JPBL guarantees a simple, safe and satisfying banking experience whether you're managing daily transactions or making plans for long-term financial success.

5. NSDL Payments Bank

Date of Establishment: 29 October 2018

NSDL Payments Bank was established in 2018. Its goal is to bring digital financial services to all the individuals, particularly those who have limited access to traditional banking. It is backed by the National Securities Depository Limited (NSDL).

NSDL Payment Bank prioritizes honesty, openness and client confidence. By connecting people with necessary banking services through technology, the bank encourages financial inclusion and stimulates the economy. 

Through its flagship app, NSDL Jiffy, account customers have 24/7 access to services like digital debit cards, zero balance savings accounts and remittance capabilities. NSDL Payment Bank offers basic banking services including AePS, Micro ATMs and DMT all over the country through its vast network of BC Agents. 

This network, which spans 18,500 pin codes and includes more than 20,00,000 BC Agents and 3164 Customer Service Points, covers 97% of the nation. To increase its offerings, the bank aggressively partners with other financial institutions, fintech companies and government agencies. NSDL Bank hopes to offer clients a variety of banking options that are customized to meet their needs by establishing strategic alliances.

Conclusion

Payment banking institutions are specialized banks that work towards the goal of achieving financial inclusivity by extending their services to underserved and unserved segments of the population. These banks possess payments bank licenses issued by the Reserve Bank of India. All the payment banks in India are licensed under Section 22 of the Banking Regulation Act 1949. The top payments banks in India are India Post Payment Bank, Airtel Payment Bank, Fino, Jio Payment Bank and NSDL Payments Bank.

FAQs about Payments Banks

Q1. What are the top 10 payment banks in India?

A. There are only top 5 payment banks in India at present. They are (i) India Post Payment Bank, (ii) Airtel Payment Bank, (iii) Fino, (iv) Jio Payment Bank and (v) NSDL Payment Bank.

Q2. What are the defunct payments banks in India?

A. Aditya Birla Payments Bank, Vodafone m-pesa Limited and  Paytm Payments Bank Limited are some payments banks that are now defunct.

Q3. Can I start a payment banking institution as a sole proprietorship?

A. No, it must be a public limited company under Companies Act 2013.

Q4. Is Paytm Payments Bank still in operation?

A. No, it has ceased its operations.

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.