Top 12 Neobanks in India in 2025
As fintech innovation continues to reshape the financial landscape, neobanks are emerging as a compelling alternative to traditional banking. Their fully digital, app-driven approach offers a seamless, user-friendly experience that caters perfectly to today’s fast-paced, mobile-first lifestyle.
Table of Contents
-
What Are Neobanks?
-
Benefits of Neobanks
-
Why Are Neobanks Growing in Popularity in India?
-
Neobanks vs. Digital Banks vs. Traditional Banks
-
Top 12 Neobanks in India (2025)
-
FAQs
What Are Neobanks?
Neobanks are digital-first financial institutions that operate without physical branches. They offer banking services entirely online through apps or web platforms. Although most neobanks are not directly regulated by the RBI, they partner with RBI-licensed banks such as HDFC, ICICI, or Federal Bank to offer compliant financial services.
These fintech platforms aim to fill the gap left by traditional banks, especially in terms of convenience, speed, and digital innovation.
Benefits of Neobanks
-
Fully digital banking experience with 24/7 access
-
Seamless onboarding and real-time account setup
-
No paperwork or in-branch visits required
-
Personalised money management tools
-
Real-time transaction alerts and transparency
-
Lower fees and charges than conventional banks
-
Enhanced security and data protection
-
Financial planning insights powered by AI
Why Are Neobanks Growing in Popularity in India?
India’s growing tech-savvy population, high mobile penetration, and increasing appetite for digital convenience have accelerated the neobank boom. Consumers, especially millennials and Gen Z, are opting for mobile-first banking that allows them to manage money on the go.
Neobanks are also appealing to SMEs, freelancers, and underserved segments with tailored, low-cost financial solutions.
Neobanks vs. Digital Banks vs. Traditional Banks
| Criteria | Neobanks | Digital Banks | Traditional Banks |
|---|---|---|---|
| Regulation | Indirect (via partner banks) | Regulated | Fully regulated |
| Customer Support | Fully digital | Digital | In-person & digital |
| Banking License | No / Partial / via partner banks | Partial | Full |
| Service Platform | App/Web-based only | App/Web-based | Branch + Digital |
| Account Opening | Fully online | Online | In-person / online |
| Approval Time | Instant | Fast | Manual & slower |
Top 12 Neobanks in India (2025)
Here's a curated list of the top-performing neobanks in India:
| # | Neobank | Interest Rate | Account Type | Founders | Year |
|---|---|---|---|---|---|
| 1 | Freo | Up to 9.1% | Fixed Deposit & Credit Services | Bala Parthasarathy, Anuj Kacker, Kunal Varma | 2015 |
| 2 | Fi Money | Up to 3% | Personal Savings Account | Sumit Gwalani, Sujith Narayanan | 2019 |
| 3 | Jupiter | Up to 4.75% | Savings + UPI Cashback | Jitendra Gupta | 2019 |
| 4 | InstantPay | - | Business Account | Shailendra Agarwal | 2013 |
| 5 | FamPay | - | Teen-Focused Savings Account | Kush Taneja, Sambhav Jain | 2019 |
| 6 | Mahila Money | - | Women-Focused Business Account | Sairee Chahal | 2021 |
| 7 | Niyo | Up to 7% | Personal Savings + Forex | Vinay Bagri | 2016 |
| 8 | RazorpayX | - | Business Banking Suite | Harshil Mathur | 2013 |
| 9 | Chqbook | - | SME-Focused Business Account | Vipul Sharma, Rajat Kumar, Mohit Goel | 2016 |
| 10 | ZikZuk | - | Credit Card for Founders | Raj N | 2020 |
| 11 | Akudo | - | Teen Learning Prepaid Account | Lavika Aggarwal, Sajal Khanna, Jagveer Gandhi | 2020 |
| 12 | Finin | Up to 5% | AI-Based Personal Finance App | Suman Gandham, Sudheer Maram | 2019 |
FAQs
Q1: Are neobanks safe?
Yes, neobanks in India typically partner with RBI-regulated banks, ensuring your deposits are secure.
Q2: Can I use neobanks for business banking?
Yes. Platforms like RazorpayX, InstantPay, and Chqbook offer robust business banking services.
Q3: Do neobanks charge hidden fees?
Most neobanks are transparent about fees. However, always review terms before opening an account.
Q4: Can I earn interest on savings?
Yes, many neobanks offer competitive interest rates, sometimes even better than traditional banks.
Final Thoughts:
Neobanks are redefining how India banks — offering smarter, faster, and more inclusive services. As digital adoption grows, these platforms are set to become even more integral to the financial lives of individuals and businesses.
.png)
0 Comments