Neobanks in India: List of Neo Banks in

India
By : Neha Dhyani

Updated : Mar 2, 2023, 15:34

Neobanks are financial enterprises akin to regular banks that operate solely on digital
platforms, such as mobile applications (apps) or website platforms. The Top Neobanks in
India do not have any physical presence across the nation and operate solely through virtual
networks.

Since Neobanks in India is majorly technology-based, their popularity has been soaring
owing to their better usage of Artificial Intelligence and a plethora of personalised services
that the traditional banking system still lacks. However, when it comes to the customers
knowing their banking personnel through face-to-face interaction, traditional banks enjoy
supremacy over their virtual counterparts.

Top 10 Neo Banks in India

With the fintech ecosystem gearing towards ease of usage and customer satisfaction, neo
banking in India has seen significant profits over the last few years. And if experts are to be
believed, the future of Neobanks in India is pretty bright. Here's a list of Neobanks in India.

S.No Name of the Neobank Founder Founding Year

1 Jupiter Jitendra Gupta 2019

2 FI Money Sumit Gwalani, Sujith Narayanan 2019

3 Niyo Vinay Bagri 2016

4 OcareNeo Dr. Neeraj Sheth 2015

5 ZikZuk Raj N 2020

6 Open Money Mabel Chacko, Ajeesh Achuthan 2017

7 Finin Sudheer Maram, Suman Gandham 2019

8 Kotak811 Uday Kotak 2016

9 Instapay Shailendra Agarwal 2013

10 Razorpay Harsheel Mathur 2013

Jupiter Neobank
This Neo bank in India owns a partnership with the Federal Bank. Opening a savings account
with this Neo Bank is convenient and easy, and you get a documented account report and aid
for any concern. Jupiter provides zero balance facilities and 1% reward points for UPI
transactions and debit cards.

FI Money Neobank

Federal Bank provides funding for Fi Money. Users can open numerous savings accounts
with this Neo bank in India. Fi Money offers up to 5.1% interest on savings accounts. Users
with Fi can also receive a Visa debit card with a secure balance account of up to ₹ 5 lakh.

Niyo Neobank

Niyo is among one of the oldest Neo banks in India. Established around 5 years ago, it has
approximately 2.5 million satisfied consumers. This Neobank has the motto of “making
banking smarter, safer, and simpler” and offers many essential products and benefits.

OcareNeo Bank

OCareNeo is the most helpful Neobank in India, wherein users can make their digital account
with a unique Health QR code. It helps to deliver health records just by scanning a QR code.
Concerning the spread of various diseases worldwide, this Neobank was founded to give your
and your family’s health report immediately from any location.

ZikZuk Neobank

This Neobank helps in the growth of small-to-medium enterprise founders. It offers

FoundersCard, a credit card with exceptional scores and even reward points. ZikZuk also
delivers communication banking to developers for handling their business finance and
dealings.

Open Money Neobank

It allows direct payouts from a business account without counting beneficiaries. This Neo
bank in India comes with a VISA business card that integrates banking, expenditures, cost
management & taxes in one go, and it is specially built for small businesses.

Finin Neobank

Finin is a Neobank in India which is an app that utilises artificial intelligence for the
effortless opening of an account and its control. Users can also check the visible insights to
enhance their finances. This Neobank was acquired by Open money in 2021 end.

Kotak811 Neobank

Kotak811 is an entirely digital, in-your-phone bank that you can install. This Neobank in
India safeguards your savings and transactions with top-notch protection. Kotak811 provides
a free virtual debit card and a zero-balance savings account.
Instapay Neobank

Instapay lets you create a digital account to expend, keep and track your money. It is one of
the most popular Neobanks in India that feeds 1% limitless cashback on online shopping,
cash withdrawals and pay-later option, with no minimum balance requirement.

Razorpay Neobank

Razorpay was launched as an API and dashboard payout medium for vendors, and its
software is customised for enterprises to automate their payroll by scheduling invoices. This
Neo bank executes duties like restricting business expenses, automating tax revenues, and
giving urgent loans.

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What are the Future Plans of Neobanks in India?

Despite neo banking in India being a seemingly newer concept, the future looks pretty
promising, with the youth and numerous business enterprises seeking the services of these
virtual banks more than their traditional counterparts.

 Although Neobanks started forming around 2013 with InstaPay and RazorpayX, it
was only in 2018 that this virtual form of banking started flourishing on Indian soil.
 By 2018, net banking in India was preferred by 7.7 million of the population, which
tripled by 2020.
 And with e-commerce and online businesses steadily showing great success in India,
the future of Neobanks is pretty promising.

Can Neobanks Replace Traditional Banks in India? (Next

Evolution of Banking)
While the future of Neobanks in India certainly looks bright, for it to erase the popularity and
credibility of the traditional banks is a distant thought. There are two reasons for Neobanks to
trail behind the conventional banking system -

 Traditional banks in India offer various services and products, keeping customers
from all strata of society.
 As a result, one can find traditional banks even in the remotest of Indian villages
without internet facilities.
 On the contrary, the top Neobanks in India offer a handful of products and services
explicitly curated for a particular customer base.
 Since the smartphone penetration rate in India is 54% as of 2020, the number of non-
tech-savvy people in the country is enormous.
 To them, the idea of a bank remains the traditional mode of banking from brick-and-
mortar institutions recognised by the RBI.
 Furthermore, since Neo banking in India is essentially a new concept, even for the
tech-savvy population to completely switch over to Neobanks seems pretty bleak.
With the list of Neobanks in India increasing, it is observed that Neobanks have a bright
future in the country.

However, to defeat the traditional banking system, the Neobanks have to introduce policies,
products, and services that cater to wider audiences and not predominantly the youth of India.