Neobanking in India

Neobanking india

Neobanking Market Overview

Types of Neobanks

Payments-led Neobank
Experience-led neobanks
Credit-led neobanks

Neobank Categories

Neobank categories

Growth Drivers

  1. Access: Technology is enabling to serve the untapped opportunity for both MSMEs and unbanked individuals in tier 2/3 rural areas as well as digital millennials.
  2. Convenience: Combined with a unique experience and ease of funds management, neobanks make banking operations convenient and on-the-go, leading to increased adoption rates.
  3. Cost-effective: No requirement of a physical setup makes neobanks extremely cost-effective to run and thus provide services at a relatively lower cost to their customers as compared to traditional banks.
  4. Transparency: Instantaneous transactions and the ability to track the money at every step makes neobanks quite transparent.
  5. Smart reporting: Due to the ability to track money continuously, neobanks are able to provide a much more comprehensive and intelligible overview around funds and transactions.

Neobank Regulatory Landscape in India

  1. RBI’s directions on prepaid payment instruments (PPIs)
  2. RBI’s guidelines for engaging business correspondents under Branch Authorisation circular
  3. RBI’s framework for Outsourcing of Payment and Settlement-related activities by Payment system operators
  4. RBI’s guidelines on managing risks and code of conduction in case of outsourcing of financial services by banks and NBFCs
  5. RBI’s direction on digital payment security controls
  6. SEBI guidelines on outsourcing of activities by intermediaries
  7. IRDAI regulation on outsourcing of activities by Indian insurers
  • Rs. 100 cr paid up capital with a min. Capital Adequacy Ratio of 15% of its total risk weighted assets.
  • Promoter needs to qualify as per the RBI’s norms like that of a PPI co., public co., NBFCs, promoters having JVs with SCBs, etc.
Payment banks vs traditional banks
Payment wallet types

Neo Banking Ecosystem — Global vs Indian

neobanking ecosystem

Neo Banking Landscape in India

neobanking india
neobanking india

Market Entry Strategy



Curated and personalized clothes from across online shopping websites

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store

Curated and personalized clothes from across online shopping websites