Synopsis- Neobanks are fully digital banks that function without traditional physical branches. They provide a variety of banking services via mobile apps and websites, emphasizing convenience and a user-friendly experience for their customers.
The neobanking industry of India has grown fast in 2025 due to increased smartphone penetration and UPI use, and government-led Digital India initiatives. There have been 10 impressive players such as Freo, Jupiter, Open among others, each serving different customer segments like millennials, SMEs, teenagers, travellers and many more. Through the use of AI, seamless UX, credit and payment solutions, these digital banks are trying to disrupt the market of traditional banks and promote financial inclusion both in rural and urban markets.
1. Freo
Freo is the first credit-led neobank in India, which was launched in 2015 by Bala Parthasarathy, Anuj Kacker, and Kunal Varma and has the largest customer base in the country. It offers:
- Digital Savings (Freo Save): An account with no balance, where you are paid up to 7% interest.
- MoneyTap: A flexible credit line.
- Freo Card: A hybrid credit & EMI card.
- Buy-Now-Pay-Later (Freo Pay): Instant purchase financing.
- Freo Utilities: Bill pay, insurance, digital gold, and FD capabilities.
- Freo is connected with Visa, NPCI, and RBI-registered partners to provide data security and maintain regulatory compliance, and conducts millions of transactions in a single day.
2. Fi Money
Founded in 2019 by Sumit Gwalani and Sujith Narayanan with an partnership with Federal Bank, Fi Money uses the tagline Next-gen savings and rewards:
- FD : Up to 6.85% interest; zero-balance; 1% fee on premature withdrawal.
- Visa Debit Card: Insured up to ₹5 lakh.
- Smart Insights: Automated spending categorization and goal-based savings.
- The ease of using the mobile app with customizable sub-accounts has made Fi Money popular, to the point of its fast adoption by young professionals.
3. Jupiter
Jupiter was established in 2019 by Jitendra Gupta with the support of Federal Bank; it provides a lifestyle banking experience:
- Zero-Balance Savings: Up to 4.75% interest on “Pots”—automated mini-savings buckets.
- 1% Rewards: On debit card swipes and UPI payments.
- Personalized Insights: AI-driven spending analytics.
4. InstantPay
Established in 2013 by Shailendra Agarwal, has specialised in B2B enterprise banking to companies both large and small:
- Instant Account Opening & Cash Deposits: Through API integration with Axis Bank, ICICI, IndusInd and Yes Bank.
- 24/7 Support: & Real-time Tracking Through: Web and mobile dashboards.
- Bulk Payouts & Vendor Payments: Automated scheduling and reconciliation.
- InstantPay supports both MSMEs and fintechs by providing a scalable payment platform to process millions of payouts each month.
Also read: Top 6 Banks Offering Monthly Interest on Savings Accounts in India – Here’s the List
5. FamPay
Kush Taneja and Sambhav Jain started FamPay in 2019 to promote financial independence among teenagers.
- Teen Debit Virtual/Physical card: Spending alert, Parental controls.
- Family Wallet: Real time notifications and allowance control .
- FamPay Future: a community where young people can discuss money management and learn it with the help of quizzes.
- FamPay has already gained the partnership of the most popular schools and online games due to its financial literacy and secure spending direction.
6. Mahila Money
Mahila Money is established by Sairee Chahal in cooperation with Capital Trade Links in 2021, and empowers female entrepreneurs:
- Collateral-Free Loans: Up to 5 lakh banks at 20% p.a without guarantors.
- Community Forums: Support offered by other peers on business and funding issues.
- Mentorship & Workshops: tailored to women run companies.
- Mahila Money has loaned out over 200 crores to over 10,000 women entrepreneurs in the past three years.
7. Niyo
Niyo is a FinTech company that was launched in 2016 and provides solutions in cross-border banking and high-yield savings:
- Multi-Currency Account: Zero charges on currency conversion by travellers abroad.
- Interest-Earning Savings: up to 7% p.a. and no minimum balance.
- Co-Branded Cards: In collaboration with large public and privately owned banks.
- Niyo has grown largely due to intense emphasis on expatriates and frequent travelers reaching a customer base of more than 2.5 million.
8. RazorpayX
In 2018, Founders of Razorpay, Harshil Mathur and Shashank Kumar launched RazorpayX, to automate and simplify financial tasks of businesses:
- 20X Credit Limits & Instant Loans: 20X Credit Limits & Instant Loans based on transaction history.
- Intelligent payments and expense management: Automated payment to vendors and expenditure management.
- API-First Platform: APIs can be used to embed the financing into an enterprise process.
- Its integration abilities have also made RazorpayX essential to digital-first small and medium enterprises as well as giant merchants.
9. Chqbook
Chqbook was developed since 2016 by co-founders Vipul Sharma, Rajat Kumar and Mohit Goel to be the digital bank suite of small businesses:
- Current Accounts & Zero-Fee loans: Accelerated KYC and Credit rating.
- Khata Digital Ledger: Automation bookkeeping with GST reconciliation.
- Rewards & Insurance: Transaction-based loyalty points, and specialized business insurance.
- Chqbook has also targeted end-to-end bookkeeping, as well as financial planning tools, which has led to a high degree of use amongst micro-enterprises.
10. ZikZuk
Established in 2020 by Raj N to help SME founders
- Founderscard: An exclusive travel and lifestyle rewards business credit card.
- Contactless Banking: Real time notification and analytics on transactions.
- Unsecured Business Loans: Fast applications of up to a 10-lakh finance.
- The curated reward partnerships and onboarding seamlessness has made ZikZuk a rapid growth and an emerging fintech player in the SME banking space.
Final Thoughts
The popularity of the leading neobanks in India highlights the transformation of financial services to the customer-focused model based on technology that focuses on convenience, customizability, and accessibility. Further integration of AI, open banking platforms, and increased rural coverage will be important in development and the strengthening of financial inclusion. With neobanks fine-tuning their products and expanding, they will reshape the banking industry in India and boost India towards a digital economy.
Written by Prajwal Hegde
