Archive · 24 Dec 2025
Payments Banks Reinvent Themselves in India
Payments banks in India were created to help people who don't have access to regular banks.
They offer services like digital payments, remittances, and debit cards.
Even though they can't lend money like regular banks, they have found ways to grow by focusing on what their customers need.
They use trusted brands and local agents to reach people in rural areas.
Payments banks have also become popular among women, who feel more comfortable using them.
They offer special accounts for safer transactions and have become an important part of India's digital finance system.
Payments banks in India have reinvented themselves by focusing on financial inclusion and leveraging trusted brands.
They offer services like digital payments, remittances, micro-ATM, AePS, debit cards, and third-party products.
Payments banks have a customer base of over 250 million, primarily in rural and semi-urban India.
They have become popular among women, who account for a significant portion of their customers and agents.
Payments banks offer innovative services like 'safe second accounts' to prioritize familiarity, control, and trust.
- Who
- Payments banks in India, including Airtel, India Post, Fino, Jio, NSDL, and Paytm
- What
- Payments banks have reinvented themselves by focusing on financial inclusion, leveraging trusted brands, and offering innovative services
- When
- The transformation has occurred over the past decade, with significant growth in recent years
- Where
- Primarily in rural and semi-urban India
- Why
- To bring banking and payment services to the financially excluded and to adapt to the digital finance ecosystem
- Number of Payments Banks in India
- 6
- Total Deposits as of Reporting
- 0.1% of total bank deposits
- Customer Base
- Over 250 million
- Key Services
- Digital payments, remittances, micro-ATM, AePS, debit cards, third-party products, business correspondent services, FASTag, cash management
- Deposit Limit per Customer
- ₹2 lakh maximum
- Top UPI Remitter Banks (November 2025)
- Airtel, India Post, Fino
- Women Customers at Fino
- 30% of customers, 10% of agents
- Women Customers at Airtel
- One-third of new accounts, 100,000 female business correspondents