Reserve Bank of India records show something most people assume isn’t true: despite dozens of companies applying for a payments bank licence back in 2015, only a genuine handful ever launched, and even fewer remain operational today. Payment banks were meant to be India’s boldest financial inclusion experiment — using telecom towers, post offices, and retail networks to bring banking to villages traditional branches never reached. In reality, the category has shrunk rather than grown, with high-profile players surrendering licences and one major name effectively shut down by regulatory action. Here’s an honest look at where India’s payment banks actually stand in 2026.
| Bank | Parent | Launch Year | Status |
| Airtel Payments Bank | Bharti Airtel, Kotak Mahindra Bank | 2017 | Operational |
| India Post Payments Bank | Department of Posts, Govt. of India | 2018 | Operational |
| Fino Payments Bank | Fino PayTech | 2017 | Operational |
| Jio Payments Bank | Reliance Industries, SBI | 2018 | Operational |
| NSDL Payments Bank | National Securities Depository Limited | — | Operational |
| Paytm Payments Bank | One97 Communications | 2017 | Operations restricted (Feb 2024) |
Why There Aren’t Actually 10 Payment Banks
Before ranking anything, it’s worth being upfront: RBI has licensed only six payment banks total, and one of those has had its operations severely curtailed. Several originally approved applicants never launched at all.
- The RBI issued in-principle approval to 11 entities in 2015, but only six eventually converted that into an operating payments bank
- Payment banks can accept deposits up to ₹2 lakh per customer but are legally barred from issuing loans or credit cards
- This deposit-only, no-lending structure has made the business model genuinely difficult to sustain profitably, explaining the high dropout rate
- Understanding this context matters more than forcing a “top 10” ranking onto a sector that simply doesn’t have that many active players
India Post Payments Bank (IPPB)
IPPB stands as the most geographically extensive and arguably the most impactful financial inclusion initiative among India’s payment banks, launched in 2018 under the Department of Posts.
- Leverages India Post’s extraordinary network of over 1.65 lakh post offices and 3 lakh postmen
- Reaches remote Himalayan and tribal areas that traditional bank branches simply cannot economically serve
- Serves rural India, elderly pensioners, and government welfare beneficiaries with savings accounts and direct benefit transfers
- Also distributes insurance and investment products, extending its role beyond basic banking
Airtel Payments Bank
Airtel Payments Bank holds the distinction of being India’s first RBI-licensed payments bank, beginning operations in 2017 through a partnership between Bharti Airtel and Kotak Mahindra Bank.
- Kotak Mahindra Bank holds a 19.9 percent stake in the venture
- Built on Bharti Airtel’s massive existing telecom retail and distribution network
- Offers seamless UPI integration and mobile-first banking, well suited to digitally engaged users
- Expanded into insurance distribution through a partnership with Bharti AXA General Insurance
Fino Payments Bank
Fino Payments Bank, launched in April 2017, built its network specifically around serving small businesses and financially underserved communities.
- Operates through a wide agent and merchant network, particularly strong in semi-urban and rural markets
- Positioned specifically for small business banking and financial inclusion use cases
- Headquartered in Navi Mumbai, with deep roots in India’s business correspondent banking model
- Continues to be one of the more consistently operational and financially stable payment banks
Jio Payments Bank
Jio Payments Bank combines Reliance Industries’ massive digital ecosystem with State Bank of India’s institutional banking credibility.
- Joint venture between Reliance Industries and State Bank of India
- Positioned to leverage Jio’s extensive mobile and digital user base for banking adoption
- Focuses on digital-first banking integrated within the broader Reliance Jio ecosystem
- Headquartered in Navi Mumbai, launched in 2018
NSDL Payments Bank
NSDL Payments Bank operates under the backing of the National Securities Depository Limited, bringing a distinctly securities-and-custody-focused institutional pedigree into payments banking.
- Backed by NSDL, one of India’s two major securities depositories
- Positioned around secure digital banking services rather than mass-market retail reach
- Headquartered in Mumbai
- Represents a more institutionally oriented entrant compared to the telecom and postal-network-driven players
Paytm Payments Bank (Restricted Operations)
Paytm Payments Bank represents the most significant cautionary tale in this sector, having had its core banking operations severely restricted by the RBI in February 2024 over persistent compliance concerns.
- Launched in 2017 under One97 Communications founder Vijay Shekhar Sharma
- RBI barred the bank from accepting fresh deposits or conducting most banking operations
- Once one of the largest and most visible payment banks by user base before the regulatory action
- Continues to exist as a licensed entity, though its practical operations remain severely limited
Payment Bank Licences That Never Launched or Were Surrendered
Several major Indian companies originally received in-principle RBI approval in 2015 but ultimately never launched or later exited the business, a history worth knowing when evaluating this sector.
- Cholamandalam Distribution Services surrendered its licence before launching operations
- Sun Pharma’s Dilip Shanghvi withdrew his approved application
- Tech Mahindra and Vodafone m-pesa both exited before establishing a full payments bank
- Aditya Birla Idea Payments Bank actually launched but shut down operations in 2019, citing an unviable business model
Frequently Asked Questions
Q1. How many payment banks are actually operating in India in 2026?
Six banks hold RBI licences — Airtel, India Post, Fino, Jio, NSDL, and Paytm — though Paytm’s operations remain severely restricted following RBI action in February 2024.
Q2. Can I take a loan from a payment bank in India?
No, payment banks are legally prohibited from issuing loans or credit cards; they can only offer savings accounts, remittances, and basic payment services up to a ₹2 lakh deposit limit per customer.
Q3. Is it safe to keep my money in a payment bank like India Post Payments Bank?
Yes, payment banks are RBI-regulated and deposits carry the same DICGC insurance coverage as traditional commercial banks, up to the standard limit.
Q4. Why did so many companies abandon their approved payment bank licences?
The deposit-only, no-lending business model has proven genuinely difficult to make profitable, leading several major companies including Cholamandalam and Tech Mahindra to exit before ever launching operations.
