Try GOLD - Free
NEO BANK
BANKING FINANCE
|May 2021
Neo bank is a kind of digital bank without any branches. Neo bank has no physical presence at any location but provides services online i.e. digital or mobile or through any other mode online.
Neo bank hasn't a banking license but provides services through trusted partners who have banking licenses. Neo bank is a more agile version of traditional and old-fashioned banking which is more appealing to tech-savvy young generation.
Neo bank provides all types of banking services to the consumer and small business needs of the consumers. At present more than 5000 startups are providing new as well as traditional financial services. Neo bank provides infrastructure that makes banking services cheap and easy from their phone. It is also known as fintech company which offers various banking services from mobile, like opening of deposit account, loan account, payments and other banking services without the burden of a physical network. Apart from it, Neo bank also does lead generation. RBI doesn't permit license to open 100% digital banks. Neo banks now a day provides traditional banking services also. Neo banks are complementing banks with better user interfaces and services.
Neo banking started in India by many Indian startups Airtel payment bank, Fino payment bank, India post payment banks, Jio Payment bank, SBI YONO, Kotak 811 are some of the examples of Neo banks closest model in India.
Why Neo bank?
This story is from the May 2021 edition of BANKING FINANCE.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM BANKING FINANCE
BANKING FINANCE
The Race for the Super App: Will India's BFSI Ecosystem Converge?
The concept of a Super App has its roots primarily in Asia. The term is often credited to refer to platforms that began with one core function (messaging, ride-hailing, payments) and then expanded to offer a portfolio of services accessed through the same interface. For example, WeChat in China began as a messaging app and evolved into payments, e-commerce, ride-hailing, mini-programs and more.
11 mins
January 2026
BANKING FINANCE
Digital Sustainability
ESG initiatives are vital for organizations aiming to achieve long-term sustainability, resilience, and stakeholder trust. They help businesses address pressing environmental challenges, such as carbon emissions, resource scarcity, and climate change, while ensuring ethical governance and social inclusion.
11 mins
January 2026
BANKING FINANCE
Ravi Ranjan appointed SBI managing director, to oversee risk and stressed assets
State Bank of India (SBI) has appointed Ravi Ranjan as its Managing Director with effect from December 15, 2025, according to a regulatory filing by the country's largest public sector lender.
1 min
January 2026
BANKING FINANCE
Reserve Bank News
Reserve Bank of India has appointed Usha Janakiraman as Executive Director with effect from December 1, 2025, according to an official release issued by the central bank. Her appointment comes just days ahead of the Monetary Policy Committee (MPC) meeting scheduled for December 3.
7 mins
January 2026
BANKING FINANCE
Mutual Fund News
Children's mutual funds, once a niche investment option, are increasingly becoming a mainstream tool for long-term financial planning in Indian households, especially for education-related goals.
7 mins
January 2026
BANKING FINANCE
Co-Operative Bank News
As per the Reserve Bank of India's Report on Trend and Progress of Banking in India 2024-25, State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs), which together constitute the short-term rural cooperative credit structure, reported steady balance sheet expansion, sustained growth in deposits and advances, and improving asset quality during 2024-25.
2 mins
January 2026
BANKING FINANCE
Legal News
Foreign firms can't claim full deduction for head of- fice expenses on Indian biz: SC
5 mins
January 2026
BANKING FINANCE
Banks unlikely to cut deposit and MCLR rates despite RBI repo rate reduction
Despite the Reserve Bank of India delivering a 25 basis points cut in the repo rate last week, banks are unlikely to reduce term deposit rates or marginal cost of funds-based lending rates (MCLR) aggressively, according to senior bankers.
1 min
January 2026
BANKING FINANCE
Government to divest up to 3% stake in Indian Overseas Bank via OFS
Shares of Indian Overseas Bank (IOB) came under selling pressure after the Government of India announced plans to divest up to 3% of its equity through an Offer for Sale (OFS).
1 min
January 2026
BANKING FINANCE
Unclaimed bank deposits in India more than double in five years
India's unclaimed bank deposits have more than doubled over the past five years, rising to Rs. 67,004 crore as on June 30, 2025, from Rs. 27,824 crore at the end of FY21, highlighting a growing challenge for the banking system.
1 min
January 2026
Translate
Change font size