The Indian financial eco system is experiencing a radical change as a result of the emergence of Neobanks, which are digital-native financial technology companies that do not have physical networks of branches. These branchless businesses use sophisticated software, AI, and sleek user experiences to streamline the complex banking procedures giving clients alternatives to the common brick-and-mortar banks which are customer-focused.
Neobanks focus directly on the needs of a digital-native population in India, as well as the vast unserved Small and Medium Enterprises (SMEs) in the country. They are valuable because they provide hyper-personalized customer services, quicker credit choices and built-in financial guidance systems that transform banking into a hassle-free digital experience.
What are Neobanks?
A neobank is a financial technology firm that provides banking services through online platforms, and which lacks any physical branch network. They signify a radical departure of conventional banking concepts, based on mobile apps, enhanced analytics, and AI to deliver hyper-personalized, streamlined and consumer-friendly financial activities.
The neobanks in India work under a distinct model of partnership set by RBI; they do not receive banking licenses per se. Rather, they make use of existing licensed banks (such as Federal Bank or ICICI Bank) to accommodate client accounts.
This makes sure that the deposits of users are safe, insured by mandatory deposit insurance (DICGC), and that the neobank only works on the creation of the innovative front-end technology, an excellent user experience, and specialized financial products (e.g., integrated payroll, zero-forex cards, or smart budgeting tools). They are useful in the efficiency, reduced overhead, and niche-market specialization such as SMEs, global travelers, or teenagers.
The Indian Neobanking Boom: Key Data Points
The market is indicative of an exponential change in the consumer trust of digital-first platforms: Bomba Market Growth:
- Explosive Market Growth: The forecast period of FY2025-FY2032 indicates a Compound Annual Growth Rate (CAGR) of 42.16% of several years of the Indian neobanking market which will grow by an estimated 2.4 times by 2032, increasing to an estimated size of 156.47 billion US dollars. Such a trend feeds on colossal urbanization and higher digital illiteracy.
- High Rate of Digital Adoption: India has an estimated 30 per cent digital banking users as of 2024 which translates to 400 million account holders. This huge rate of adoption offers a solid base through which neobanks can expand their services in a short period.
The Indian Model – Partnership and Regulation
India In India, unlike other countries, such as the UK (such as Revolut) or the US (such as Chime), neobanks do not receive their own full banking licenses by the Reserve Bank of India (RBI). They, instead, work on a distinct model of partnership, but share their client accounts with an established and licensed bank (i.e. Federal Bank, ICICI Bank, or SBM Bank).
This regulatory framework ensures:
- Security and Trust: Customer deposits remain protected by the licensed Security and Trust: The deposits of the customers are insured by the licensed partner bank and are insured by deposit insurance (DICGC) which is a very important aspect of trust.
- Agility and Innovation: The neobank is only concerned with the creation of the front-end user experience, technology, and analytics, with the partner bank taking care of the regulatory compliance, the core banking services, and capital requirements.
It has resulted in a highly specialized market with players being keen on niche segments- corporate finance and youth banking, global traveller and women entrepreneurs.
List of Top 12 Neobanks in India
The list below includes 12 of the largest neobanks in terms of their primary target audience: SME/Enterprise, Retail/Personal Finance, and Specialized/ Niche.
1. RazorpayX
Website: https://payroll.razorpay.com/
RazorpayX, the neobanking annex of the fintech giant Razorpay controls the market of the SME and startup banking. Its main value proposition lies in its mission to turn the complicated business finance processes into digital smooth operations. The platform is not just a digital current account but a complete healthcare financial operations system that costs the payroll processing, TDS and GST tax submissions, and automated payment to vendors.
With RazorpayX collaborating with IDFC First Bank, the companies gain complimentary zero-balance accounts and high-security compliance. Its API-first enables startups to do everything in the financial stack, including gathering revenue using Razorpay to handle the costs and payments of employees, solidifying its position as a must-have tool of scaling an enterprise in India.
Target Market: SMEs, Startups, Enterprises.
Key Features:
- Business accounts,
- built in payroll and tax compliance,
- automated supplier payouts,
- API banking,
- current accounts.
Pros:
- Unparalleled payments gateway connection;
- advanced payroll and tax robotization;
- firm support of a unicorn in fintech.
Cons:
- This is mainly business-oriented;
- there is little to offer in the area of personal retail banking.
2. Open
Website: https://open.money/
Open is among the most funded neobanks in India, operating in the direct competitors of RazorpayX in the SME market. What makes Open stand out is the fact that it is based upon integrated accounting and cost management of the business. Through his collaboration with the ICICI Bank, Open gives entrepreneurs clever current accounts, which are directly connected to applications that ease the GST submission and accounting procedures.
The platform has been constructed with support of physical and virtual cards, which provide the employees with the opportunity to be shown the limits related to spending and the ability of a business owner to categorize expenses in real-time. This tendency to make SME finance, especially payment reconciliation, more automated, regardless of operating on Tally or Zoho Books, is what makes Open an indispensable part of the busy founders and solopreneurs who wish to have a more organized financial background.
Target Market: SMEs, directly to entrepreneurs and filming freelancers.
Key Features:
- In-built accounting and GST filing,
- smart expense management cards,
- business current accounts,
- built-in card issuance,
- automated reconciliation.
Pros:
- Good interconnection with accounting programs;
- a keen emphasis on cost management and employee cards;
- A great investment means constant enhancement of features.
Cons:
- User interface, although highly detailed, may be complicated to first-time business owners;
- and works only with third-party accounting software.
3. Jupiter
Website: https://jupiter.money/
Jupiter will focus on making banking hassle free and a smart experience to the modern retail consumer who happens to be predominantly within the young professional bracket. Jupiter is a partner company of Federal bank and has a savings account of zero minimum balance. It is characterized by its user-friendly mobile application, which is based on AI to optimize budgeting and expenses monitoring. Customers are able to create Pots to have automated savings targets, which have competitive interest rates.
The highlight of the incentive is the one percent reward point system on the UPI transactions and on debit card spending, which is very hard to find in the market and hence makes daily banking a financial reward. Jupiter is a financial wellness company by encouraging financial health in an intuitive detectable interface and integrating all investments, positioning itself as a full person finance platform.
Target Market: Young professionals, Retail people.
Key Features:
- Zero minimum balance savings account (Federal bank partner),
- Budgeting tools,
- Savings Pots which is automated and has 1 percent reward points on UPI and spending on a debit card,
- net worth tracking.
Pros:
- Masterfully motivating day-to-day UPI operation;
- no minimum balance requirement;
- automatic budgeting and savings (Pots);
- robust community-focused business model.
Cons:
- the forex markup fees are imposed internationally (unlike Niyo/Zolve);
- investment options are yet to develop as compared to exclusive investment sites.
4. Fi Money
Website: https://fi.money/
Fi Money is a modern digital banking platform founded by two former Google employees, created to offer a frictionless and smart way of managing money for well-paid, tech-savvy professionals. As one of the emerging Neobanks in India, Fi collaborates with Federal Bank to provide a zero-balance savings account with a clean, user-friendly design.
Its standout feature, Ask.Fi, is an AI-powered financial assistant that answers queries and delivers personalized financial insights. Fi also enables automated saving through customizable FIT Rules—letting users save specific amounts whenever they perform certain activities, such as ordering food online. The platform integrates seamlessly with investment apps, giving users a unified dashboard to manage spending, saving, and wealth creation with ease.
Target Market: High-Income Professionals, Technical people.
Key Features:
- Zero balance savings account (Federal bank partner),
- Ask.Fi (AI-assisted financial assistant),
- FIT Rules to automate savings,
- investment tracking,
- to integrate a mutual fund.
Pros:
- The best AI based help ( Ask.Fi);
- effective automated saving functions ( FIT Rules);
- sleek and minimalist design;
- no minimum balance is required.
Cons:
- It is initially targeted at more salaried professionals;
- it is not as broadly accessible;
- certain high-interest saving rates come with penalties of withdrawals that are premature.
5. Niyo
Website: https://goniyo.com/
Niyo has managed to establish itself as the market leader in cross-border banking and travel banking solutions. The most popular is its Niyo Global Card that has zero forex mark up charge on global transactions; hence, necessitating the card by frequent travelers, international students and NRIs. Niyo collaborates with financial institutions including YES Bank and SBM Bank to provide digital savings accounts to their clients combined with investment monitoring applications (Niyo Money).
Niyo makes global finance smarter, safer and cheaper with its help, as it fundamentally solves one of the biggest pain points of a typical Indian user, who constantly needs to interact with foreign currencies, making compliance easier and its international funding less expensive and transparent.
Target Market: International travelers, Business travelers, Personal Financing.
Key Features:
- Niyo Global (Zero forex markup card),
- Niyo Money (investment platform),
- corporate salary accounts,
- expense tracker,
- savings accounts.
Pros:
- Zero Forex Markup on international deals (significant cost-saving factor);
- extensive portfolio of travel centered products;
- extensive experience in international finance;
- great with the students and international travelers.
Cons:
- Customer support is very chat-based/digital;
- there are some tedious account opening processes possible as a result of partner bank KYC requirements.
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6. Freo
Website: https://freo.money/
Within India, Freo is the first credit-based neobank to close the credit gap of millions of users. Freo collaborates with a wide range of financial institutions (such as IDFC FIRST Bank and RBL Bank) to provide a wide array of credit solutions, with an engine of its digital savings account, Freo Save. In contrast to most competitors who only operate in the payments sector, Freo offers users access to flexible credit lines ( MoneyTap ) and BNPL (Buy Now, Pay Later) services, which are usually provided to prospective users, who might not succeed in receiving credit with conventional financial institutions.
This is coupled with a concentration on convenient digital lending in addition to contemporary savings resources since Freo is a complete offer to the economically ambitious client.
Target Market: Credit-Seeking people, Retail shoppers.
Key Features:
- Freo Save (Savings Account),
- Freo Pay (BNPL/Pay Later),
- MoneyTap (Flexible Credit Line),
- Credit Card offerings (Freo Card),
- smart banking.
Pros:
- Good credit accessibility (MoneyTap, Freo Pay),
- good rates on savings (Freo Save);
- high financial inclusion requirement;
- variety in product offering (credit and savings).
Cons:
- Dependent on several lending partners;
- A credit-led model exposes this company to more risks.
7. FamPay
Website: https://www.famapp.in/
FamPay is one of the leading neobanks in India aimed at youth, focusing particularly on teenagers (Gen Z). It enables users aged 10-18 to carry out digital transactions through their prepaid FamCard and a mobile app under parental control.
The platform encourages financial consciousness and independence early on, offering teens budgeting, expense management, and savings tools. It often includes gamified features to promote responsible spending. FamPay also provides an educational and safe onboarding process to digital finance by streamlining KYC, requiring only parental verification.
Target Market: teenagers (Gen Z), young people, students (Age 10-18)
Key Features:
- A prepaid card (real and virtual),
- parental control and monitoring,
- expenditure management,
- a learning-oriented interface,
- and not the presence of a bank account (parental KYC).
Pros:
- hygienic in its product design among the Gen Z;
- early financial literacy enjoys ensuring a platform with effective parental controls;
- zero bar on the UPI transfer.
Cons:
- Small number of features (no big lending/investment);
- transaction caps exist because of the regulations on minors.
8. Mahila Money
Website: https://mahila.money/
Mahila Money is a specialised purpose-led neobank that caters to women entrepreneurs and women in small businesses only. After understanding how women experience difficulty in acquiring formal credit and networking, Mahila Money, with the collaboration of an NBFC, introduces the specific lending products to the businesses of women. The site offers critical financial literacy courses and an effective collaboration of mentorship community networks, which are holistic in nature. This niche approach will bridge the financial inclusion divide to empower women in India to be economically independent.
Target Market: Female entrepreneurs, women small and medium-sized entrepreneurs.
Key Features:
- special lending and credit facilities,
- a community for mentorship and networking,
- current accounts of business,
- and financial literacy classes.
Pros:
- Niche credit products to female entrepreneurs;
- robust community and mentorship program;
- high social impact requirement;
- minimal entry levels to micro-SME owners.
Cons:
- Specialist services that might not be appropriate in general personal banking;
- have to depend on NBFC partners to conduct the core lending.
9. InstantPay
Website: https://www.instantpay.in/
InstantPay is one of the pioneering neobanks in India, offering B2B enterprise solutions and P2P banking services. Unlike consumer-focused competitors, it specializes in providing robust, high-volume banking services to both large and small businesses.
The platform excels in handling daily high-volume transactions, automated payment services, comprehensive cash management, and API integration for enterprise clients. InstantPay is committed to delivering a scalable and secure platform that automates financial processes, establishing itself as a trusted partner for firms requiring institutional-grade digital banking solutions.
Target Market: Business, Consumer, large scale enterprises.
Key Features:
- B2B business banking,
- Current account at the option to upgrade,
- automatic payment,
- cash control,
- high volume transactions.
Pros:
- lengthy track record and reliability;
- extensive platform on which to undertake B2B high volume transactions;
- good cash manager and API integration.
Cons:
- Not as consumer facing;
- small business pricing is complicated;
- Enterprise-oriented financial flows are the features of this product.
10. Chqbook
Website: https://www.chqbook.com/
Chqbook is carefully crafted to meet the needs of the underserved market of small business owners, proprietors and local shop owners (Kirana stores). The platform has zero minimum balance requirements on a digital current account, and this is a direct response to a pain point that the conventional banks disregard.
Chqbook offers integrated features such as digital ledger (Khata) management and access to business loans at the touch of the button hence makes the everyday management of finances less cumbersome. As an all-in-one financial market, Chqbook enables these solopreneurs to receive customized financial solutions, thus allowing them to handle cash flow and raise the required working capital online.
Target Market: Small Business owners, proprietors, Solopreneurs.
Key Features:
- Zero balance digital current accounts,
- digital ledger (khata),
- instant business loans,
- insurance products,
- marketplace of financial services.
Pros:
- Extremely specialized to cater to small ownerships and Kirana stores,
- no minimum balance current accounts,
- great emphasis on simplified lending and the digital ledger service.
Cons:
- It is explicitly limited to business features;
- not integrated with high-end payment gateways as well as RazorpayX.
11. ZikZuk
Website: https://www.zikzuk.com/
ZikZuk is a business-oriented neobanking application, the mission of which is to trade smart financial solutions to SME founders and corporate employees. It has one major product; the Founders Card, which is a rewards-based business credit card that is aimed at entrepreneurs with an outstanding credit score.
ZikZuk is a company focused on offering unsecured business loans and real-time analytical solutions beneficial in enabling founders to make data-driven decisions regarding the cash flow and cost management. Part of strategic options such as incorporating financial intelligence into the operational banking will make ZikZuk a partner in sustainable and scalable growth to small-to-mid-sized enterprises.
Target Market: Founders of SMEs, Employees of corporations, businesses.
Key Features:
- Founders Card (Corporate Credit),
- Unsecured Business Loans,
- Real-time transaction analytics,
- Contactless banking,
- Cash management.
Pros:
- specialized credit solutions (Founders Card);
- high-quality analytical-based data on cash management;
- Support for business loan applications is powerful.
Cons:
- Stuff is more B2B and not oriented to ordinary consumers;
- the platform is not as recognized as Open or RazorpayX.
12. Zolve
Website: https://zolve.com/
Zolve offers a huge international challenge by offering hassle free cross-border banking to NRIs and students traveling across India and foreign markets (mainly US). Zolve provides users with a U.S. based bank account and credit line depending on the Indian credit history and this is the solution to the problem of getting credit in foreign countries.
Major Characteristics: No charges of foreign transactions, ease in the process of transferring money across countries, and combined management of both accounts in both nations. The value of Zolve is that they minimize friction and high forex between global citizens through bridging financial ecosystems.
Target Market: NRIs, Studying Abroad Foreign Students, and Global Citizens.
Key Features:
- Cross-border banking account,
- instant credit line,
- no charge on foreign transactions,
- US/ India account management,
- international money transfer services.
Pros:
- Resolves the acute issue of US-India credit establishment;
- No foreign transaction charges;
- Ideal to students, and professionals who are moving to a foreign country.
Cons:
- Specialty service will not suit the typical domestic customer;
- it depends on a series of bank and lending partners to provide its service.
Neobank Comparison Table
| Neobank | Primary Audience | Partner Bank(s) | Key Value Proposition | Min. Balance Required | Core Revenue Stream |
| 1. RazorpayX | SME / Startups | IDFC First Bank | Integrated Payroll & Financial Ops | ₹0 (Current Account) | SaaS Fees, Credit/Lending |
| 2. Open | SME / Entrepreneurs | ICICI Bank | Integrated Accounting & Expense Mgmt. | ₹0 (Current Account) | SaaS Fees, Card Interchange |
| 3. Jupiter | Young Professionals | Federal Bank | Smart Budgeting & UPI Rewards (1%) | ₹0 (Savings Account) | Interchange, Investment (MF) |
| 4. Fi Money | Salaried Individuals | Federal Bank | AI-Powered Savings (Ask.Fi) | ₹0 (Savings Account) | Interchange, Investment |
| 5. Niyo | Travelers / Global | YES Bank / SBM Bank | Zero Forex Markup Global Card | Varies (Savings Account) | Cross-Border Interchange, Lending |
| 6. Freo | Credit Seekers | IDFC First Bank / RBL Bank | Accessible Credit Line & BNPL | ₹0 (Savings Account) | Interest on Lending, BNPL Fees |
| 7. FamPay | Teenagers (Ages 10-18) | YES Bank (Partner) | Secure Prepaid Card & Financial Literacy | ₹0 (Prepaid Account) | Interchange, Advertising |
| 8. Mahila Money | Women Entrepreneurs | Capital Trade Links (NBFC) | Specialized Lending & Community | Varies (Lending Focus) | Interest on Lending |
| 9. InstantPay | B2B Enterprises | Various Partners | High-Volume Enterprise API Banking | Varies (Business Account) | Transaction Fees, API Subscriptions |
| 10. Chqbook | Small Shop Owners (Kirana) | Various Partners | Zero Balance Digital Current Account | ₹0 (Current Account) | Lending, Insurance Commission |
| 11. ZikZuk | SME Founders / Corporate | Various Partners | Corporate Credit / Data-Driven Cash Mgmt. | Varies (Current Account) | Credit Card Interchange, Lending |
| 12. Zolve | NRIs / Students Abroad | Partner Banks (US/India) | Cross-Border Credit Building / Zero Forex | Varies (Savings Account) | Forex Fees (Low), Lending, Interchange |
Conclusion: The New Face of Indian Finance
Neobanks in India is no longer a baby, and it has come to be a permanent contender in the banking arena. These platforms enjoy great popularity due to the popularity of digital usage and the strength of UPI and can effectively compete against the physical banking system because it takes specialization and provides an unprecedented level of user-experience.
The 12 best neobanks demonstrate 2 important market dynamics: the move to digital enterprise (razorpayX and open lead) and the customized retail experience (jupiter and fi money lead). The fact that some niche players such as FamPay (youth) and Mahila Money (women) can cater to serving a specific segment that has not been well served is confirmation of the sustainability of the partnership-based model that the RBI has imposed.
These neobanks will keep transforming the manner in which money is handled in India as the digital economy matures and these platforms will no longer be mere transaction platforms but rather smart financial advisors that can easily blend saving, spending and wealth creation services to all layers of the population.
FAQs
1. What is The Major Distinction Between a Neobank and a Traditional Bank in India?
A Neobank is an online-based financial institution that requires neither an actual type of a physical network of branches nor a full banking license. It has to collaborate with an existing licensed, traditional bank to provide core banking services (such as holding deposits). A Traditional Bank is fully licensed by the RBI and has the physical branches.
2. Is a Neobank Account Safe With My Money?
Yes. The licensed partner bank ( e.g., Federal Bank, ICICI Bank) holds funds deposited into a neobank. The Deposit Insurance and Credit Guarantee Corporation (DICGC) insures these deposits up to [?]5 lakh as any other standard bank account.
3. Why is There so Much Attention of Neobanks to SMEs (Small and Medium Enterprises)?
The traditional banks have not been serving SMEs innovatively because of the lengthy documentation process and the perceived riskiness. There is a direct fit to this gap with neobanks such as RazorpayX and Open relying on technology to aid ease of compliance, automate accounting and provide faster and risk-assessed credit and cash management solutions.
4. Is There an International Transaction Fee of Forex Markup That Neobanks Impose?
It depends on the card. The Niyo and cross-border travel neobanks such as Zolve infamy are known to have zero-forex-markup cards, and so are best suited to international travelers and students. Even aerodynamic standard retail neobanks can impose a traditional fee of 3.5 per cent on cross-border credit card transactions.
5. Why is The Importance of Jupiter Giving 1 Percent Rewards On UPI Transactions?
This is an incentive that is very unusual and valuable. As UPI is the main mode of day to day transaction in India, offering 1 percent of returns on UPI expenditures incentivizes an individual to use the neobank account to make all his or her day to day expenditures, thus making the bank the center of the financial life of the user.