India Neo-Banking Market Overview,2030

India's neo banking sector developed alongside the Unified Payments Interface (UPI) transformation, which changed how digital payments work and established a foundation for financial services aimed at mobile users. In contrast to conventional banks, neobanks function solely in the digital space, providing banking services via applications and cloud technology without having physical locations. Their growth was spurred by UPI’s quick, interoperable payment systems that facilitated smooth transactions between peers and merchants, as well as by the government’s initiatives for financial inclusion through Aadhaar-linked options and projects focused on digital education. Neobanks have tackled two significant issues the unbanked population, which has traditionally been excluded due to the need for documentation and distance from financial institutions, and financing for small and medium enterprises (SME), where traditional banks have often struggled to deliver prompt, unsecured loans. Utilizing e-KYC, neobanks allow for immediate onboarding through biometric identification, while embedded lending practices utilize transaction data to provide microloans and working capital to small enterprises and gig workers. Firms such as Jupiter, Open, RazorpayX, and Niyo have developed customized services for various customer types Open concentrates on SME banking with features like automated invoicing and expense management; Jupiter appeals to younger users with playful savings and budgeting applications; RazorpayX assists freelancers with integrated payment solutions and tax preparation. The customer demographic includes SMEs, freelancers, gig economy participants, and tech-savvy youth, all of whom expect quick, clear, and mobile-friendly services. These users take advantage of features such as rapid account creation, UPI compatibility, virtual debit cards, and AI-generated financial insights. Developments such as UPI Autopay, real-time credit assessments, and savings pods based on goals have further improved user experience and trust. Although India’s neo banking environment is not directly supervised by the RBI, it functions in collaboration with accredited banks to ensure regulatory adherence while promoting flexibility.

According to the research report ""India Neo Banking Market Overview, 2030,"" published by Bonafide Research, the India Neo Banking market is anticipated to grow at 41.88% CAGR from 2025 to 2030. India’s neo banking sector has remarkable growth is propelled by widespread smartphone usage, the adoption of UPI, and an increase in digital-first financial behaviors. Recent events include significant funding rounds, for instance, Open’s USD 50 million funding, marking it as the 100th fintech unicorn in India. Services from platforms like Jupiter and Fi have broadened to include UPI Autopay, goal-oriented savings, and embedded lending, whereas RazorpayX has enhanced its business banking solutions with features such as automated payroll, tax submissions, and vendor payment options. Prominent players comprise Open, which specializes in SME banking and offers integrated invoicing and credit options; RazorpayX, which provides API-based financial infrastructure suitable for startups and freelancers; Jupiter, which engages younger users with playful savings methods and personal finance management; and Fi, which combines banking services with behavioral nudges and intelligent analytics. These platforms function through collaborations with certified banks, which allows them to provide regulated services without needing direct banking licenses. There are extensive possibilities in rural finance and SME access. With more than 63 million SMEs and a rural demographic exceeding 65%, neobanks play a vital role in enhancing credit availability, improving financial literacy, and facilitating digital onboarding. Innovations such as e-KYC, voice-activated interfaces, and alternative credit scoring are opening up opportunities for underserved populations, particularly in tier-2 and tier-3 cities. Regulatory oversight is managed by the Reserve Bank of India (RBI), which implements KYC/e-KYC regulations, AML guidelines, and data localization requirements as per the Payment and Settlement Systems Act. Neobanks are required to keep payment information within India and undergo system evaluations by entities accredited by CERT-In. These regulations promote consumer safety, cybersecurity, and adherence to laws, allowing neobanks to grow responsibly within India’s rapidly changing digital economy.

India's neo banking sector by account type is divided into Business Account and Savings Account showcases a financial environment that is innovative and digitally inclusive, catering to both personal finance and entrepreneurial requirements. Business Accounts are tailored specifically for small and medium enterprises (SMEs) and startups, providing various digital resources that enhance operations, facilitate payments, and ease credit access. Services such as Open, RazorpayX, and Zerodha’s Jupiter offer features like automated invoicing, monitoring of expenses, payroll administration, and live reporting dashboards. A significant aspect is the incorporation of UPI, which facilitates immediate payments to vendors, collections from customers, and reconciliation without needing complex banking setups or point-of-sale systems. These accounts enable small businesses to handle cash flow effectively, minimize transaction expenses, and expand their operations with limited overhead costs. The continuous availability of UPI and its compatibility with different banks is crucial for startups in e-commerce, logistics, and service industries. On the personal finance front, Savings Accounts are aimed at young individuals, unbanked residents in rural areas, and employed professionals, featuring mobile-centric banking solutions with user-friendly designs and no maintenance charges. Neobanks such as Jupiter, Fi, and Niyo facilitate quick account openings through e-KYC, offer smart tools for budgeting, savings plans tied to specific goals, and debit cards that provide cashback incentives. For individuals in rural settings and new earners, these accounts serve as a safe option compared to cash, promoting financial literacy and access to legitimate credit. Numerous platforms also support local languages and voice-guided navigation, improving user experience in tier-2 and tier-3 locations. Employed individuals gain advantages from savings linked to their salaries, automated payment of bills, and tailored financial advice driven by artificial intelligence.

India’s neo banking sector, by application is divided into Enterprise, Personal and Others showcases an ambitious and inclusive financial environment focused on digital growth. Adoption by enterprises is mainly driven by startups and small to medium-sized enterprises (SMEs), which account for more than 99% of the nation’s business framework. These organizations frequently encounter difficulties in obtaining prompt, collateral-free loans and handling their cash flow effectively. Neobanks such as Open, RazorpayX, and Zerodha’s Jupiter provide customized business accounts that include UPI payments, automated invoicing, expense management, and integrated lending solutions. Startups gain from an API-based system that unifies banking with payroll processing, vendor oversight, and tax submissions essential for growth within India’s rapidly evolving digital market. On a personal level, neobanks target young individuals and working professionals with mobile-first savings offerings that prioritize simplicity, personalization, and financial education. Services from Jupiter, Fi, and Niyo feature quick onboarding through e-KYC, intelligent budgeting functions, savings pods aimed at specific goals, and debit cards providing cashback options. Younger users appreciate interactive interfaces and up-to-date financial information, while working professionals utilize these accounts for salary deposits, automatic bill payments, and savings linked to investments. Such offerings represent a transition from traditional banking to proactive financial participation, particularly among the urban population that is digitally savvy in India. Within the Others segment, neobanks are promoting rural financial inclusion and supporting cooperation between fintech and the government. With more than 65% of India’s populace living in rural settings, platforms like Jai Kisan and Ezeepay are broadening access to microloans, domestic money transfers, and government-supported initiatives like Jan Dhan and PM Suraksha Bima Yojana. Fintech companies are also collaborating with governmental organizations to enhance rural banking capabilities, introduce mobile ATMs, and digitize services reaching the last mile.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Neo-Banking Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Account Type
• Business Account
• Savings Account

By Revenue Stream
• Interchange & Payment Fees
• Lending Income
• Subscription Fees
• Other Fees

By Application
• Enterprise
• Personal
• Others
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