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Top 10 Neobanks In India

Neobanks In India
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What If I tell you Neobanks in India are the future of the traditional banking system? You may find it hard to believe, but that’s not our personal opinion; it’s, in fact, based on a recent report. 

This banking system has gained a lot of traction in recent years and has continued to uphold its popularity among GenX. The reasons are obvious; Neobanking is taking over those hackneyed traditional banking practices through technologically enhanced systems. 

Despite this immense popularity, it is still quite far from wide adoption. However, due to its X-Factors, like offering financial services round the clock at lower costs, we think neobanking will take no time to take over the entire Indian banking sector. 

Before moving forward to our well-researched list of the top 10 Neobanks In India, first, understand the basics of this advanced banking system & how it works.

What Are NeoBanks & How Does It Work? 

While many individuals refer Neobank to as the traditional banking system; in reality, they are fintech firms that function exactly like traditional banks but operate digitally through website & mobile applications.

As a technologically advanced system, Neo banks save time by eliminating the hassles of old banking tactics like In-person cash deposits, bulky documentation, and branch visits.

The most surprising thing about Neo banks in India is that they are not directly regulated by the Reserve Bank Of India (RBI), but the fact doesn’t make them unsafe or scams. 

They are fully legit to operate as they partner with leading banking institutions such as ICICI, Yes Bank, HDFC, and other RBI-registered banks. 

What Are The Key Differences Between Neo Banks & Traditional Banks? 

Neo banks in India function precisely like traditional banks, but their overall operating system somehow makes the difference. While traditional banking systems are struck on outdated practices, neobanks are making their presence through digital advancement that not only saves time & money but also lowers the hassles that are common in their traditional counterparts.

The comparison table below will help you with a clear idea of the key differences between Neobanks vs Traditional banks. Let’s see!

 

Functions Neobanking System Traditional Banking System
Regulation & License They are not directly regulated but partner with RBI-registered banking institutions Fully regulated by the RBI
Existence Online Physical Branches
Customer Service Online In-person & Online 
Service Platforms Online via Web & Mobile Apps In-person through physical branch & Online 
Account Opening Applications Online Online & In-person
Account Approval Process Online & Quick Manual process & Time-consuming

Now that you have gained a good knowledge of Indian Neobanks, let’s talk about the top Neobanks in India, along with their features. 

Why Are Neo Banks Making it Count? 

As said earlier, Neo Bank is the future of traditional, and the reasons are obvious. However, the benefits it comes with & features of the Neobanks in India are what make it count. We have compiled a list of a few advantages of this technologically advanced banking system. 

  • One-stop solution for all digital & convenient banking services. 
  • Allow bill payments, and issue prepaid cards, money transfers, and savings accounts.
  • User-friendly services that are available round-the-clock. 
  • User-friendly mobile applications with a simple interface. 
  • Access to wealth creation & management services.
  • Real-time notification.
  • Affordable & convenient than traditional banks.

 

List Of Top 10 Neobanks In India

Scrolling down the internet for the best Neobanks in India, we found hundreds of options. But not every option is reliable & best, so we curated our list to the top 10. So let’s look at them and understand their features, along with the services that make them stand out. 

niyo global neobank

Niyo Global

Niyo is the oldest Neo Bank in India, active since 2015. It can be termed the best digital bank in India on the back of the services it offers. 

The platform has partnered with Visa & leading banking institutions like SBM, DCB, & Yes Bank to offer services. Whether you need a digital saving account, a forex card, a prepaid card, or any services related to banking needs. 

Apart from offering banking services, it also serves as a wealth management platform where you can invest in Mutual Funds and domestic stocks. The platform’s USP remains its low-cost banking, customer-centric user experience & Forex card. 

Why We Put Niyo On Our List Of Top 10 Neobanks In India?

  • Free Digital Savings Account
  • Zero Forex Markup
  • Supports 150+ Foreign Currencies
  • 24×7 in-app chat support
  • Upto 6.5% interest on savings with monthly payout

Freo neobank

Freo

While Niyo takes pride in being the oldest Neo Bank in India, Freo is India’s first Credit-led Neobank operating since 2015. The platform partners with leading banks and regulated financial institutions, which include IDFC Bank, RBL Bank, InCred, TapStart, Fullerton India, Acko & Apollo Finvest India LTD. 

While operating as a regular bank, Freo offers a savings account, credit line, credit card, pay later apps, and financial utilities through its dedicated products. For instance, 

  • Freo Save, a zero balance saving account, offers upto 7%* interest.
  • The MoneyTap App offers a credit line of up to INR 5,00,000.
  • FreoPay, a dedicated mobile app, comes with a credit of up to Rs. 8,000.
  • Freo Utilities is an investing platform for millennial investors. 

Top Features Of Freo

  • 7%* Savings Interest Rate
  • Zero Balance Account
  • Get Quick Access to Credit
  • 15 Million+ trusted clients

fi money

Fi Money

It is a federal-backed Neo Bank in India that allows you to save, invest and manage your money. To offer banking services in India, the platform has partnered with ICICI Bank. 

The services available on Fi Money include a zero balance salary account, access to personal loans, investments, p2p payments, fund transfers, bill payments and a debit card. 

Regarding security, Fi offers insurance up to ₹5 lakhs per the RBI’s insurance deposit scheme.

Top Features Of Fi Money

  • No need to maintain the minimum balance
  • Zero forex markup 
  • Withdraw from any ATM 
  • No hidden fees 
  • Insurance up to ₹5 lakhs

Read Also- FTMO Review

jupiter neobank

Jupiter

Jupiter is the second Neobank in India that is backed by the Federal bank. The available product of the platform includes a zero-balance salary account, a smart debit card and mutual fund investments. 

The account opening process is also quick & fully digital, from applying to verifying it. Moreover, for debit card & UPI transactions, it offers rewards of upto 1% and 2.5% interest on pots investing.

Top Features Of Jupiter

  • 100% digital account opening
  • Convenient on-the-go banking
  • Real-time insights into spending
  • 24×7 customer support.

instantpay neobank

InstantPay

InstantPay is probably the largest Neo Bank, offering services to both individuals & large-cap companies. The platform claims to have 1 million+ registered businesses and 1 Million+ worth of daily transactions. 

As a digital banking system, it offers quick account opening, active account tracking, and a professionally-managed customer support system. In addition, its partnership with Axis Bank, ICICI Bank, Indusind Bank and Yes Bank offers a safety assurance to its users. 

InstantPay Top Features

  • Helpful customer support via phone, chat, or email.
  • Manage payments and expenses all in one place.
  • Smart current account for institutional clients.

fampay neobank

FamPay

FamPay is the first Neo Bank India, specially created for teenagers and their families. This platform allows minors to make UPI & P2P and offline payments without setting up a bank account. 

The virtual payment card can be used for shopping both domestically and internationally. Additionally, the “FamPay Future” feature allows younger generations to learn, debate and discuss the financial system & policies. 

Top Features Of FamPay 

  • Scan & Pay option for customized UPI 
  • Recharge, pay bills, shop online, and more
  • Two-factor authentication on all payments
  • Super safe card that you can block or pause anytime

Read Also- Trade Nation Review

razorpayx neobank

RazorPayX

RazorPayX is one of the most popular payment platforms that enable businesses to accept, process, and disburse payments across various channels. It holds payment-aggregator licenses, which allow its users to easily accept payments from customers across the globe, in multiple currencies, and through various payment modes such as credit cards, debit cards, net banking, UPI, and popular e-wallets.

One of the key features of RazorpayX is its ability to process cross-border payments seamlessly. This is particularly useful for businesses that operate in multiple countries.

Top Features Of RazorPayX

  • Free Current Account
  • Safe & Regulated 
  • New age banking dashboard
  • UPI, IMPS, NEFT, RTGS Payouts

chqbook neobank

ChqBook

ChqBook, pronounced as Cheque Book, is the only Indian Neo Bank that offers financial services to small businesses. Besides banking services, it offers a dedicated app for transaction tracking, insurance & zero-fee loans. 

Benefits Of Chqbook

  • A dedicated digital ledger service – Khata
  • Insurance coverage
  • Current accounts for businesses
  • Rewards on all transactions
  • Loans with zero fees

zikzuk neobank

ZikZuk

ZikZuk is an SME Neo Bank that focuses more on the growth of SME founders in India rather than individuals. The platform offers a good customer experience and helps founders make more informed, data-driven decisions.

ZkZuk offers contact banking through which entrepreneurs can avail of unsecured loans to help fund their businesses.

Top Features Of ZikZuk

  • A Dedicated Business Finance Manager
  • SME CREDIT CARD
  • Data Aggregation & Connected Banking
  • Flawless customer experience

Read Also- Dizicx Review

akudo neobank

Akudo

Akudo is one of India’s first Neobanks focusing on economic freedom among youths & their families. As a banking service provider, it offers a sleeky-designed prepaid card to teenagers under their parents’ guidance. 

The platform offers an opportunity for families to track the spending of their children & teach them how valuable money is.  

Benefits Of Akudo NeoBanks

  • Prepaid card & app for ages 11-18
  • Acceptable at online & offline stores
  • Issuance of personalized VISA card in just 120 seconds
  • Cashback on all transactions

Conclusion

The Neobanks concept has become popular in India due to its convenience and ability to reach a broader customer base through technology. Above, we have listed the top 10 Neobanks in India. These are the best Neobanks options available in India right now. 

But before you choose one from the list mentioned earlier, it is essential to know that Neobanks may not be the best choice for everyone. Some people may prefer the personal touch and face-to-face interactions these technologically advanced banking systems lack.

While most Neobanks focus on money management, wealth creation is equally important. We commend these banks for incorporating features for investments. So people find all services in one place. Until this recommended feature rolls out, you can invest through InvestFW at zero commission. 

FAQs

Which Neo Bank In India Is Best?

Niyo is the best Neo Bank in India, active since 2015. The platform has partnered with Visa & leading banking institutions like SBM, DCB, & Yes Bank to offer services.

Are Neo Banks Registered With RBI?

NeoBanks are not directly regulated by the Reserve Bank Of India (RBI), but they partner with leading banking institutions such as ICICI, Yes Bank, HDFC, and other RBI-registered banks. 

Is Paytm A Neo Bank?

No, Paytm is not a Neo bank but an NBFC (Non-Banking Financial Corporation), as it can’t issue credit and debit cards. 

Is Neobank Legal In India?

Yes, they are legit to operate in India through their RBI-registered partners. 

What Neobank Means?

Neobanks are fintech firms that function exactly like traditional banks but operate digitally through website & mobile applications.

What Is The Difference Between Neobank And Digital Bank?

Neo banks in India function precisely like traditional banks, but their overall operating system somehow makes the difference. While traditional banking systems are struck on outdated practices, neobanks are making their presence through digital advancement that not only saves time & money but also lowers the hassles that are common in their traditional counterparts.

What Are Neobanks Examples?

Examples of Neobanks include Niyo, Freo, Fi Money, Jupiter, InstantPay, FamPay, ZikZuk, Akudo, and RazorX. 

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