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

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 payment bank 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.
• They 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 2025

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

Please note that the information in the table may change, and for detailed information, we request that you visit the official website of these banks for accurate and up-to-date information.

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:

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 insured by DICGC up to ₹5 lakh across banks.
• 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 2025–2026

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. By 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, Payment Banks are a reliable option. 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.

Which Payment Bank is best?

The “best” depends on whether you want digital convenience or offline access. The following are some of the criteria which you can consider:

• For reach in villages: India Post Payment Bank
• For digital-first services: Paytm Payment Bank
• For telecom-linked ecosystem: Airtel Payment Bank and Jio Payment Bank
• For agent-assisted services: Fino Payment Bank

Author: Diwakar Kumar Singh

Diwakar Kumar Singh is an accomplished content creator with over 6 years of experience in crafting both long-form and short-form content.

 

A gold medalist in MBA (Marketing) from IMT and a qualified petroleum engineer, Diwakar brings a results-driven mindset to his work. His passion for writing enables him to produce compelling and engaging content that resonates with diverse audiences.