How Many Payments Banks Are There in India in 2026?
India has 5 active payments banks in 2026: Airtel Payments Bank, India Post Payments Bank (IPPB), Fino Payments Bank, Jio Payments Bank and NSDL Payments Bank. The sixth, Paytm Payments Bank, lost its banking licence on 24 April 2026, was ordered to be wound up by the Delhi High Court in July 2026, and was removed from RBI's list of scheduled banks (notification dated 31 July 2026, announced on 7 October 2026). Payments banks can hold up to ₹2 lakh per customer but cannot lend.
Key takeaway for bank exams: 5 payments banks. Paytm PB licence cancelled 24 Apr 2026 under Section 22(4) of the Banking Regulation Act. Deposit cap ₹2 lakh (raised from ₹1 lakh from 7 April 2021). Minimum capital ₹100 crore, CRAR 15%, at least 75% of demand deposits in government securities. Idea: Nachiket Mor Committee (2014). Guidelines: 27 November 2014.
All facts were checked against RBI's payments bank licensing guidelines, RBI press releases on Paytm Payments Bank (24 April, 28 July and 7 October 2026) and RBI's scheduled bank list on 17 October 2026. Revise it together with the small finance banks list 2026.
Payments Banks List in India 2026
| No. | Payments bank | Promoter | Headquarters | Began operations | Scheduled bank? |
|---|---|---|---|---|---|
| 1 | Airtel Payments Bank | Bharti Airtel | New Delhi | 2017 (first payments bank to launch) | Yes |
| 2 | India Post Payments Bank | Department of Posts, Government of India | New Delhi | 2018 (national launch 1 September 2018) | Yes |
| 3 | Fino Payments Bank | Fino PayTech | Navi Mumbai | 2017 | Yes (only listed payments bank) |
| 4 | Jio Payments Bank | Reliance (Jio Financial Services) with SBI | Mumbai | 2018 | No (not in RBI's scheduled list on 17 Oct 2026) |
| 5 | NSDL Payments Bank | National Securities Depository Limited | Mumbai | 29 October 2018 | Yes (added 2025) |
RBI's Bank Links page still shows Paytm Payments Bank in its payments bank list, but RBI cancelled the licence on 24 April 2026 and excluded the bank from the Second Schedule, so do not count it as active.
Paytm Payments Bank Licence Cancellation: Timeline
| Date | Event |
|---|---|
| 11 Mar 2022 | RBI stopped Paytm Payments Bank from onboarding new customers |
| Jan-Mar 2024 | RBI barred fresh deposits, credits and top-ups in customer accounts and wallets |
| 24 Apr 2026 | RBI cancelled the banking licence under Section 22(4), BR Act, 1949, from close of business |
| 8 and 22 Jul 2026 | Delhi High Court ordered winding up; Girikumar M. Nair (former SBI CGM) appointed Official Liquidator |
| 31 Jul 2026 | RBI notification excluding the bank from the Second Schedule to the RBI Act, 1934 |
| 7 Oct 2026 | RBI press release announcing the exclusion (Gazette dated 7 September 2026) |
RBI said the bank had enough liquidity to repay its entire deposit liability, and gave reasons including that its affairs were conducted in a manner detrimental to depositors' interests.
What Can a Payments Bank Do? (RBI Rules)
| Allowed | Not allowed |
|---|---|
| Savings and current accounts | Any lending (loans, overdrafts) |
| Deposits up to ₹2 lakh per customer at day end | Credit cards |
| ATM / debit cards | NRI deposits |
| Payments and remittances (NEFT, RTGS, IMPS, UPI) | Fixed / time deposits from customers |
| Act as business correspondent of another bank | Setting up subsidiaries for non-banking financial services |
| Sell mutual funds, insurance and pension products (with RBI approval) | |
| Bill payments |
Payments Bank Guidelines: Numbers to Remember
| Rule | Value |
|---|---|
| Recommended by | Nachiket Mor Committee on Comprehensive Financial Services for Small Businesses and Low Income Households (report, January 2014) |
| Final guidelines | 27 November 2014 |
| In-principle approvals | 11 applicants, August 2015 |
| Minimum paid-up equity capital | ₹100 crore |
| Maximum balance per customer | ₹1 lakh at start; ₹2 lakh from 7 April 2021 |
| Minimum CRAR | 15% (Tier I at least 7.5%) |
| Leverage ratio | At least 3% |
| Deployment of demand deposits | At least 75% in SLR government securities / T-bills up to 1 year; at most 25% with other scheduled banks |
| Promoter stake | At least 40% for the first 5 years |
| Rural access points | At least 25% of physical access points in rural centres |
| Name rule | Must use the words "Payments Bank" |
| Deposit insurance | Covered by DICGC |
Why only 5 of the 11 approvals are working
Of the 11 in-principle approvals of 2015, Cholamandalam Distribution Services, Tech Mahindra, Dilip Shanghvi's consortium and Vodafone m-Pesa gave up their licences, Aditya Birla Idea Payments Bank began operations but shut down in 2019, and Paytm Payments Bank lost its licence in 2026. That leaves Airtel, IPPB, Fino, Jio and NSDL.
Payments Bank vs Small Finance Bank (Difference Table)
| Point | Payments bank | Small finance bank |
|---|---|---|
| Lending | Not allowed | Allowed (75% of ANBC to priority sector) |
| Deposit limit | ₹2 lakh per customer | No limit |
| Minimum capital | ₹100 crore | ₹200 crore (on-tap rules) |
| CRAR | 15% | 15% |
| Fixed deposits | Not allowed | Allowed |
| Committee | Nachiket Mor | Raghuram Rajan (idea of small banks) |
| Number in 2026 | 5 | 11 |
| Example | India Post Payments Bank | AU Small Finance Bank |
A payments bank may apply to convert into a small finance bank after 5 years of operations, under RBI's 2019 on-tap SFB guidelines.
Common Mistakes in Payments Bank Questions
- Writing 6 payments banks in 2026. Paytm's licence was cancelled, so the answer is 5.
- Writing the deposit limit as ₹1 lakh. It has been ₹2 lakh since April 2021.
- Saying payments banks can give small loans. They cannot lend at all.
- Calling India Post Payments Bank the first payments bank. Airtel Payments Bank launched first; IPPB is government-owned and has the widest reach through post offices.
Payments Banks Questions with Answers (Practice Set)
- How many payments banks are active in India in 2026? Answer: 5.
- When did RBI cancel Paytm Payments Bank's licence? Answer: 24 April 2026.
- Under which section was the licence cancelled? Answer: Section 22(4) of the Banking Regulation Act, 1949.
- What is the maximum balance a payments bank customer can hold? Answer: ₹2 lakh.
- Which committee recommended payments banks? Answer: Nachiket Mor Committee.
- Minimum paid-up capital for a payments bank? Answer: ₹100 crore.
- Can a payments bank issue a credit card? Answer: No. It can issue debit and ATM cards only.
- Which was the first payments bank to begin operations in India? Answer: Airtel Payments Bank.
- What share of demand deposits must a payments bank invest in government securities? Answer: at least 75%.
- Which payments bank is promoted by the Department of Posts? Answer: India Post Payments Bank.
Practise more in the IBPS & SBI Clerk Banking Awareness Mock Test 01 and IBPS & SBI PO Banking Awareness Mock Test 02.
Payments Banks FAQs
How many payments banks are there in India in 2026?
Five: Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, Jio Payments Bank and NSDL Payments Bank.
Is Paytm Payments Bank still working?
No. RBI cancelled its banking licence on 24 April 2026, the Delhi High Court ordered it to be wound up in July 2026, and RBI removed it from the list of scheduled banks.
What is the deposit limit in a payments bank?
₹2 lakh per individual customer at the end of the day, raised from ₹1 lakh by RBI from 7 April 2021.
Can a payments bank give loans?
No. Payments banks are barred from all lending; they can only take demand deposits and provide payment and remittance services.
Which committee recommended payments banks?
The Nachiket Mor Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, in January 2014.
What is the difference between a payments bank and a small finance bank?
A small finance bank is a full bank that lends, mainly to small borrowers; a payments bank cannot lend and can hold only up to ₹2 lakh per customer.
Practice Next
- Mock tests: IBPS & SBI PO Banking Awareness Mock Test 01 and IBPS & SBI Clerk Banking Awareness Mock Test 02.
- Related notes: small finance banks list 2026, bank merger list 2026, banking terms A to Z, CRR and SLR rate 2026 and types of cheques in banking; also see financial inclusion schemes in India, plus NEFT, RTGS, IMPS and UPI difference, plus important committees related to banking.
- Exam details: SBI Clerk 2026 notification.
- Browse all study notes.