List of Top Payment Banks in India 2026: A Comprehensive Guide

Dec 29th 2025

Finance

Payment Banks in India were introduced as part of the financial inclusion strategy by the Reserve Bank of India (RBI) in 2015–16.

The idea was simple: create lightweight, tech-driven banks that focus on payments, remittances, and deposits, especially for people who don’t need full-scale banking services like loans.

In this article, we bring you the updated list of top Payment Banks in India, their headquarters, branch presence, and what they are known for.

What is a Payment Bank?

Let us first quickly understand what a payments bank in India is from the following points:

A Payment Bank is a special type of bank in India licensed by the RBI under Section 22 of the Banking Regulation Act.
Payments Bank in India can accept deposits up to ₹2 lakh per customer, but they cannot directly lend money like a regular bank.
Their services include savings/current accounts, payments & remittances, issuing debit cards, internet/mobile banking, and distribution of insurance & mutual funds.
They are designed to serve migrant workers, low-income households, small businesses, and people in remote areas.

List of Top Payment Banks in India 2026

The following is the list of top payment banks in India:

Payment Bank	Headquarters	Strengths	Customer Support Number (Customer Care Number)
India Post Payment Bank (IPPB)	New Delhi	Largest Payment Bank by reach, leverages India Post network, focuses on rural inclusion, doorstep banking, & Aadhaar-enabled services.	155299
Airtel Payment Bank	New Delhi	First Payment Bank in India, strong digital + telecom synergy, high penetration in Tier-2/3 towns, insurance and UPI-linked products.	1800-23400
Paytm Payment Bank	Noida, Uttar Pradesh	Known for wallet + UPI ecosystem, large digital user base, prepaid instruments, FASTag issuance, digital-first positioning.	0120-4456-456
Fino Payment Bank	Navi Mumbai, Maharashtra	Asset-light model, strong BC-agent network in rural/semi-urban India, high focus on remittances, prepaid cards, and merchant payments.	1800 268 1000
Jio Payment Bank	Navi Mumbai, Maharashtra	Joint venture with SBI + Reliance, targets Jio telecom users, bundled digital services (UPI, wallets, JioPay).	1800 890 7070

Please note that for detailed information about the above list of the best payment banks in India, we recommend visiting the official websites of these banks.

How are Payment Banks Different from Small Finance Banks and Regular Banks?

The following table shows the differences between payment banks and other types of banks:

Feature	Regular Bank	Small Finance Bank	Payment Bank
Can accept deposits	Yes	Yes	Yes (max ₹2 lakh/customer)
Can give loans	Yes	Yes	No
Target audience	Everyone	Low-income, MSMEs	Migrant workers, low-income, small transactions
Priority sector lending requirement	Yes	75% of ANBC	No (not allowed to lend)
Credit cards	Yes	Limited (select SFBs)	No
Key strength	Full-service banking	Inclusion + lending	Payments + digital transactions

Benefits of Banking with Payment Banks

The following are the benefits of banking with payment banks:

Doorstep Access: With India Post Payment Bank and BC-agent models, even remote villages get access.
Digital-first Services: UPI, wallets, and mobile banking made simple.
Safe Deposits: Up to ₹2 lakh limit, with deposits are insured by DICGC up to ₹5 lakh per depositor across all banks combined.
No-frills Banking: Easy KYC, no need for extensive paperwork.
Complementary to Wallets/UPI: They act as the backbone for digital transactions in India.

Key Updates in Payment Banks 2026

The following are some of the key updates to payment banks' policies and regulations:

Deposit Limit: RBI reaffirmed the ₹2 lakh cap per customer, but allowed greater flexibility in wallet interoperability.
IPPB expansion: India Post Payment Bank scaled further into doorstep banking with biometric authentication.
Digital UPI surge: Airtel, Paytm, and Jio Payment Banks integrated deeper with UPI 2.0 and cross-border remittance pilots.
Regulatory Lens: RBI tightened norms on data privacy and KYC compliance for fintech-linked Payment Banks.

Conclusion

Payment Banks may not provide as many services as regular or small finance banks, but they serve a critical role in India’s digital and inclusive banking ecosystem. We have given the payment bank list as of 2026. India Post Payment Bank, Airtel Payment Bank, and Paytm Payment Bank are clear leaders, thanks to their strong networks and digital focus.

For customers who want convenient, digital-first, and low-friction banking, you can choose from the list of payment banks in India. They are not designed for loans or credit, but for safe deposits, quick payments, and financial inclusion - they remain indispensable as they are easily accessible.

Frequently Asked Questions

How to close Airtel Payment Bank account?

You can close your Airtel Payment Bank account by calling their customer care at 400 (from Airtel) or 8800688006 (from other numbers) or by writing to wecare@airtelbank.com. You’ll need to clear pending dues and withdraw remaining funds before closure.

What is a Payment Bank?

A Payment Bank is a type of bank regulated by RBI that provides basic services like deposits, payments, UPI, debit cards, and remittances. But unlike regular banks, they cannot lend money.

How to open Airtel Payment Bank account?

You can open an Airtel Payment Bank account using the Airtel Thanks app or by visiting an Airtel Payment Bank outlet. A valid Aadhaar + PAN and mobile number are required for e-KYC verification.

How many Payment Banks are there in India?

As of 2026, there are five operational Payment Banks: India Post Payment Bank, Airtel Payment Bank, Paytm Payment Bank, Fino Payment Bank, and Jio Payment Bank.

Is Paytm Payment Bank working?

Yes, Paytm Payment Bank is operational in 2026. It continues to provide digital wallets, UPI services, FASTags, and savings accounts. However, it works under strict RBI guidelines.

How to close Paytm Payment Bank account?

You can request closure via the Paytm app > Profile Settings > Help & Support, or by emailing helpdesk@paytmbank.com. Clear funds and unlink auto-pay before requesting account closure.

Is Airtel Payment Bank safe?

Yes. Airtel Payment Bank is licensed by RBI, follows all banking regulations, and deposits are insured under DICGC up to ₹5 lakh. However, like all banks, you should only deposit within the limits and check official updates.

What is Airtel Payment Bank?

Airtel Payment Bank is India’s first operational Payment Bank, launched in 2017. It offers savings accounts, UPI, debit cards, insurance, and digital banking services, mainly targeting semi-urban and rural users.

How do I stop automatic payments from my bank account?

You can stop auto-debit/automatic payments by:

Disabling the mandate in your mobile banking app/net banking
Calling customer care of your bank
De-registering the UPI mandate or standing instruction.

What is the difference between Payment Bank and normal bank?

The following are the differences between a payment bank and a normal bank:

Payment Banks: Can accept deposits (max ₹2 lakh), issue debit cards, enable payments, but cannot lend.
Normal Banks: Full-service means they can accept deposits, offer loans, credit cards, investments, and have no deposit cap.