Table of Contents
- List of Payments Bank and Small Finance Banks in India
- Features of Payments Banks:
- Features of Small Finance Banks:
- Difference Between Payments and Small Finance Banks and Regular Banks:
- Paytm Payments Bank:
- Airtel Payments Bank:
- India Post Payments Bank (IPPB):
- NSDL Payments Bank:
- Fino Payments Bank:
- Jio Payments Bank:
- List of Small Finance Banks in India
- Capital Small Finance Bank Limited:
- Equitas Small Finance Bank Limited:
- Suryoday Small Finance Bank Limited:
- Ujjivan Small Finance Bank Limited:
- Utkarsh Small Finance Bank Limited
- ESAF Small Finance Bank Limited:
- Fincare Small Finance Bank Limited:
- Jana Small Finance Bank Limited:
- North East Small Finance Bank Limited:
- Shivalik Small Finance Bank Limited
- Unity Small Finance Bank Limited:
- Faq's
List of Payments Bank and Small Finance Banks in India
In the rapidly changing landscape of Indian banking, two distinctive categories of financial institutions have emerged as powerful agents of change: Payments Banks and Small Finance Banks. Introduced by the Reserve Bank of India (RBI), these specialised banks have been instrumental in promoting financial inclusion and reaching the unbanked and underbanked populations.
In this article, we will take a look at the list of Payments Banks and Small Finance Banks, in India and highlight the differences from regular banks.
Features of Payments Banks:
Payments Banks, introduced by the RBI, have been designed to harness the potential of digital technology to deliver accessible financial services.
The key features of Payments Banks include a strong emphasis on digital platforms, limited services (excluding credit activities), and a focus on reaching customers in remote and rural areas. These banks act as facilitators of digital transactions, aiming to bridge the gap between traditional banking and the unbanked.
Features of Small Finance Banks:
Small Finance Banks are tailored to cater to the financial needs of small businesses, micro and small industries, and the unorganized sector. They are mandated to allocate a significant portion of their lending to priority sectors, ensuring inclusive growth. Small Finance Banks offer a range of retail banking services, including savings accounts, fixed deposits, and micro loans, with a particular focus on microfinance.
Difference Between Payments and Small Finance Banks and Regular Banks:
| Aspect | Traditional Banks | Payments Banks | Small Finance Banks |
|---|---|---|---|
| Scope of Services | Wide array including lending and credit cards | Limited to savings accounts, remittances, and sale of financial products | Broader range with a focus on specific sectors and priority lending |
| Digital Focus | Traditional brick-and-mortar presence | Emphasis on digital platforms for remote customer reach | Digital platforms leveraged for accessibility |
| Target Audience | General population | Unbanked and underbanked populations | Small businesses, micro-industries, unorganized sector |
Paytm Payments Bank:
Paytm Payments Bank, a subsidiary of the digital payments giant Paytm, is revolutionizing banking in the digital age by offering a seamless mobile banking experience. Customers can easily open accounts through a paperless process on their mobile phones, access various financial services like bill payments and investments, and benefit from no minimum balance requirement. The bank's integration of a digital wallet allows for convenient transactions both online and offline, setting it apart from traditional banks.
Paytm Payments Bank focuses on financial inclusion by reaching unbanked populations and providing services to remote areas through its technology driven approach. Offering interest-bearing savings accounts with competitive rates, the bank encourages saving culture among customers and provides value-added services like free digital transactions and easy account management. Despite recent regulatory challenges leading to restrictions on new customer onboarding and deposit acceptance after March 15, 2024, Paytm Payments Bank continues to innovate and expand its offerings to solidify its position as a leading super app in India's digital landscape
Website link: https://www.paytmbank.com/home
Airtel Payments Bank:
A joint venture between Bharti Airtel and Kotak Mahindra Bank, Airtel Payments Bank was awarded the first license by the RBI in the payments bank sector in September 2015. Since then the bank has been making significant strides in the payments bank ecosystem. Offering a rewarding interest rate of 6% per annum on deposits over one lakh rupees, the bank has established itself as a rewarding banking proposition.
The success of the bank is attributed to its focus on safe digital products like savings accounts, debit cards, and FASTag services, catering to various customer segments including Urban Digital, Rural Underbanked, and Industries and Businesses. The bank takes compliance and innovation seriously and has solidified its position as the only profitable fintech institution in the country. Further, by leveraging a paperless approach through Aadhaar-based e-KYC, Airtel Payments Bank simplifies the account opening process for users with an Aadhaar card, PAN card, and smartphone with internet connectivity. With a strong emphasis on digital transactions and financial inclusion, Airtel Payments Bank continues to expand its offerings and user base while maintaining a focus on compliance and customer satisfaction.
Website link: https://www.airtel.in/bank/
India Post Payments Bank (IPPB):
India Post Payments Bank (IPPB) is a significant player in the digital banking sector, offering a range of convenient services through its mobile app. Customers can enjoy hassle-free banking with features like zero initial deposit, paperless account opening, and advanced payment modes like QR card-based payments. The commitment to financial inclusion is evident through partnerships with organizations like Hindustan Zinc to offer financial services to CSR beneficiaries and initiatives like Fincluvation. Focus on easy account management, seamless sweep-in/out options, and doorstep banking enhances the overall customer experience. Despite facing challenges, India Post Payments Bank continues to expand its services and reach, aiming to provide accessible banking solutions to a wide range of customers across India.
Website link: https://www.ippbonline.com/
NSDL Payments Bank:
NSDL Payments Bank, established in 2018 and promoted by National Securities Depository Limited (NSDL), is a digital bank that aims to provide digital financial inclusion to the masses. The bank prioritizes integrity, transparency, and customer trust while delivering seamless and secure banking experiences. Leveraging technology, NSDL Payments Bank bridges the gap between individuals and financial services, focusing on financial inclusion and a digital-first approach to empower individuals and drive economic growth. Account holders enjoy access to a range of services including zero balance savings accounts, current accounts, physical and digital debit cards, remittance facilities, and various digital banking solutions through the NSDL Jiffy app. The bank has established a nationwide merchant agent network with over 20 lakhs+ touchpoints, enabling basic banking transactions through AePS, Micro ATMs, and DMT. NSDL Payments Bank actively strengthens partnerships across various sectors to expand its service offerings and reach, aiming to provide customers with comprehensive banking solutions tailored to their evolving needs. Through its commitment to fostering financial inclusion and building an inclusive society, NSDL Payments Bank continues to grow its reach and impact across India
Website link: https://www.nsdlbank.com/
Fino Payments Bank:
Fino Payments Bank, a prominent player in the financial landscape of India, is committed to driving financial inclusion through its innovative banking solutions. Fino offers a variety of digital banking services, including savings accounts, remittances, and bill payments. Fino serves both urban and rural customers through a network of branches and business correspondents, bridging the gap between traditional banking and unbanked people. Due to its customer-centric approach, Fino Payments Bank has positioned itself as a key contributor to the financial empowerment of millions across the country through simplicity and accessibility.
Website link: https://web4.finobank.com/
Jio Payments Bank:
Established in November 2016, Jio Payments Bank Limited, an initiative of Reliance, seeks to transform the financial inclusion sector in India. The bank is driven by the vision of creating a user-friendly and affordable banking ecosystem, with a particular focus on the underserved population. Headquartered in New Delhi, Jio Payments Bank is dedicated to digitising payments comprehensively.
Website link: https://www.jiopaymentsbank.com/
List of Small Finance Banks in India
AU Small Finance Bank Limited:
AU Small Finance Bank, rooted in microfinance, extends a range of financial products and services to the economically weaker sections. With a commitment to financial inclusion, AU SFB operates with a strong presence in Rajasthan and has expanded its operations across various states.
Website: https://www.aubank.in/
Headquarters: Jaipur, Rajasthan.
Capital Small Finance Bank Limited:
Capital SFB focuses on serving the financial needs of small businesses and the unorganized sector. Operating with a customer-centric approach, it offers a suite of banking services, contributing to the inclusive growth of the regions it serves.
Website: https://www.capitalbank.co.in/
Headquarters: Jalandhar, Punjab.
Equitas Small Finance Bank Limited:
Emerging from microfinance, Equitas SFB provides financial solutions to the economically marginalized. It emphasizes the upliftment of underprivileged sections through an array of banking products and services.
Website: https://www.equitasbank.com/
Headquarters: Chennai, Tamil Nadu
Suryoday Small Finance Bank Limited:
Suryoday SFB is dedicated to empowering the underbanked segments by providing tailored financial solutions. With a focus on microfinance and small businesses, it plays a crucial role in driving financial inclusion.
Website: https://www.suryodaybank.com/
Headquarters: Navi Mumbai, Maharashtra.
Ujjivan Small Finance Bank Limited:
Ujjivan SFB, stemming from a microfinance background, is committed to providing financial services to the urban and semi-urban poor. It stands as a key player in bridging the financial gap for the underserved population.
Website: https://www.ujjivansfb.in/
Headquarters: Bengaluru, Karnataka.
Utkarsh Small Finance Bank Limited
Utkarsh SFB operates with a mission to deliver inclusive banking services, particularly to the unbanked and underserved. Its commitment to financial empowerment is reflected in its comprehensive range of banking products.
Website: https://www.utkarsh.bank/
Headquarters: Varanasi, Uttar Pradesh.
ESAF Small Finance Bank Limited:
ESAF SFB emphasizes financial inclusion, targeting underserved communities. With a focus on microfinance and small-scale enterprises, it contributes to the economic upliftment of its customers.
Website: https://www.esafbank.com/
Headquarters: Thrissur, Kerala.
Fincare Small Finance Bank Limited:
Fincare SFB is dedicated to providing banking solutions that cater to the diverse needs of its customers. Its focus on financial inclusion and innovative banking services sets it apart in the small finance banking sector.
Website: https://www.fincarebank.com/
Headquarters: Bengaluru, Karnataka.
Jana Small Finance Bank Limited:
Jana SFB stands as a key player in extending financial services to the unbanked and underbanked. With a commitment to inclusivity, it offers a spectrum of banking solutions to empower its customers.
Website: https://www.janabank.com/
Headquarters: Bengaluru, Karnataka.
North East Small Finance Bank Limited:
North East SFB caters to the unique financial requirements of the northeastern region. Committed to the economic development of the area, it provides comprehensive banking services to the local population.
Website: https://www.nesfb.com/
Headquarters: Guwahati, Assam.
Shivalik Small Finance Bank Limited
Shivalik SFB operates with a vision to contribute to financial inclusion and economic growth. Serving a diverse customer base, it offers a range of banking products and services to meet the needs of its community.
Website: https://www.shivalikbank.com/
Headquarters: Saharanpur, Uttar Pradesh
Unity Small Finance Bank Limited:
Unity SFB focuses on providing inclusive banking solutions to the unbanked and underserved. With a commitment to financial empowerment, it plays a vital role in fostering economic growth in its operational areas.
Website: https://www.unitysmallfinance.com/
Headquarters: Vadodara, Gujarat
Understanding the unique features of Payments Banks and Small Finance Banks, as well as their differences from traditional banks, is essential in appreciating their role in fostering financial inclusion in India. As these specialized banks continue to innovate and expand their reach, they are poised to play a pivotal role in shaping the future of banking in the country.
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