If you use Paytm Payments Bank, you’ve probably heard the news – the RBI is making some changes. After March 15th, 2024, you won’t be able to put any new money into your account. And you are looking for Paytm Payment Bank alternative, that’s why you have landed here…..
Don’t worry; you can still withdraw them, but it’s time to consider other options. The RBI is about keeping things safe for users, so they clearly had concerns about Paytm. Also, You might be aware that IPO faced criticism due to its high valuation despite a history of losses, raising concerns about potential overpricing.
This is a good reminder to always look for secure banks that follow the rules.
So Paytm Payment Bank users don’t be upset. It only happens for your safety concerns, so be happy.
Now, many users are wondering about the best alternative to Paytm payment bank.
This post will give you the top 7 best payment banks in India in 2024 with pros and cons. I will mention the top 7 to top 1 Paytm payment bank alternatives, and the top 1 will be the best alternatives to payment banks.
But First, we should know what a payment bank is and why we need it.
About Payment Bank
A payment bank is a specialized bank offering essential banking services to people who might lack access to traditional banks.
These banks focus on deposits, payments, and remittances rather than loans or credit cards.
They leverage digital technologies like online and mobile banking to make these services widely accessible.
Primarily, payment banks aim to bring more people into the formal banking system, especially in underserved or remote areas. They often partner with retail stores or communication providers to extend their reach.
These types of banks aim to simplify financial transactions for everyone by offering accessible, affordable banking.
Payment Banks Advantages
Payment banks have many advantages, especially in enabling free banking services and promoting financial inclusion. These are a few of the main benefits:
- Financial Inclusion: Bring banking services to a wide range of populations.
- Basic Banking Accessibility: Offer deposits, payments, and remittances without a full-fledged bank account.
- Digital Convenience: Enable easy transactions through mobile apps and online platforms.
- Low-Cost: Provide affordable services due to streamlined operations.
- Partnerships: Expand reach and bring banking access to more areas.
- Efficient Transactions: Facilitate quick and secure digital payments.
- Reduced Cash Reliance: Promote Digital transactions for improved security and financial tracking.
In conclusion, payment banks contribute to the general economic growth and financial stability of communities by improving the accessibility, affordability, and convenience of banking services.
Best Paytm Payments Bank Alternative
Don’t worry about the hassle of switching banks. Discover the carefully curated list of top 7 Paytm Payments Bank alternatives; here you go…
AU Small Finance Bank
AU Small Finance Bank began as a vehicle financing company and transitioned into a broader banking institution. While they share some similarities with payment banks, they offer additional products like loans and credit cards.
Key Features
- Savings Accounts: AU offers savings accounts with interest rates of up to 7.25%, including monthly interest payouts.
- Fixed Deposits: Earn higher interest rates with fixed deposits (up to 8.5% for senior citizens).
- Digital Banking: Manage your finances easily with their mobile app, AU 0101, and net banking platform.
Airtel Payment Bank
Airtel Payment Bank was established in 2016 and is now almost 7 years old in the payment bank industry. It is a joint venture of the well-known Bharti Airtel and the Kotak Mahindra Bank.
Moreover, It has been used by more than 1.5 million shops in India, which is increasing daily.
Airtel Payment Bank offers various services like accepting deposits, sending money, and enjoying other banking services seamlessly.
No average monthly balance is required in this Airtel payment bank. As the Airtel payment is a joint venture of Bharti Airtel, this benefits Bharti Airtel’s broad network, one of India’s biggest telecom providers.
- Airtel Payment Bank offers an interest rate of 2.50% on the savings account.
- Free personal accident insurance.
- Cashback schemes on online transactions (tnc apply).
Fino Payment Bank
Fino Payment Bank was established in 2017 and is now almost 6 years old in the industry. It is the subsidiary of Fino Paytech Limited, which is a big player in the banking sector.
This Payment Bank has over 400 branches in India and over 25000 banking points. Banking Points refer to the physical appearance of the bank in the form of ATMs or support services offices.
Fino Payment Bank offers various financial products like current accounts, savings accounts, and banking services. Fino Payment bank has been used by more than 1 million shops in India, which is increasing daily.
- Fino Payment Bank offers an interest rate of 2.75% to 6.25% on the savings account.
- Doorstep banking
- Biometric authentication
Jio Payments Bank
Jio Payment Bank was established in November 2016 and is now almost 7 years old in the payment bank industry. It is the Joint Venture of Reliance Industries Limited(RIL) and State Bank of India (SBI).
Jio Payment Bank has more than 25000 banking points. Banking Points refer to the physical appearance of the bank in the form of ATMs or support services offices.
Jio Payment Bank offers various financial products like current accounts, savings accounts, and banking services. Jio Payment Bank has been used by more than 1 million shops in India, which is increasing daily.
- Fino Payment Bank offers an interest rate of 4% on the savings account.
- Access to SBI ATMs
- Friendly UI for online banking services
NSDL Payments Bank
NSDL stands for National Securities Depository Limited and is a subsidiary of NSDL. It has over 100 branches in India and over 3000 banking points. It was established in November 2016.
Banking Points refer to the physical appearance of the bank in the form of ATMs or support services offices.
NSDL Payment Bank offers various financial products like current accounts, savings accounts, and banking services. It has more than 1 million shops in India.
- NSDL Payment Bank offers a 3.5% to 6.5% interest rate on the savings account.
- Free debit card and chequebook
- unlimited free transactions at NSDL ATMs and partner bank ATMs
India Post Payments Bank
India Post Payment Bank was established in September 2018 and is now almost 5 years old in the payment bank industry. It is a government-owned financial institution, which gives more valuable points to trust in this Indian Post Payment Bank.
India Post Payment Bank has over 650 bank branches and over 3250 banking points. Banking Points refer to the physical appearance of the bank in the form of ATMs or support services offices.
India Post Payment Bank offers various financial products like current accounts, savings accounts, and banking services.
- India Post Payment Bank offers an interest rate of 2.75% on the savings account.
- Government-owned institutions (more trustworthy)
- Multiple payment options
kotak 811 Bank
Kotak 811 is not considered a payment bank but it has also features that the payment bank has like it can be opened digitally (no need for a branch visit), zero balance account, and other payment bank facilities.
Moreover, It is part of Kotak Mahindra Bank, meaning Kotak 811 users will officially take services from Kotak Mahindra Bank. Kotak Mahindra Bank is the leading private bank in India, with more than 1700 branches.
It has more than 2900 ATMs in India, of which Kotak 811 users can avail themselves. Kotak 811 offers a wide range of financial products like current accounts, savings accounts, and banking services.
- Kotak 811 offers an interest rate of 4% on the savings account.
- More than 2900 ATMs
Conclusion
Don’t worry, and you have excellent alternatives! We have explored the list of the top 7 Paytm Payments Bank alternatives for 2024, from well-known banks like Kotak 811 and India Post Payments Bank to other reliable options.
Find the bank that best suits your needs, and take control of your financial future. Switch to a reliable and user-friendly payment bank today!