Neobanks — Digital-Only Banks: Complete 101 Guide
Last updated: March 2026
What is a Neobank?
Neobanks are digital-only banks that operate exclusively through mobile apps and web platforms, without physical branch infrastructure.
Key Characteristics
- 100% digital experience
- No physical branches
- Tech-first approach
- Lower operational costs
- Instant account opening
How Neobanks Work
Account Opening
- Download app
- Submit documents (DigiLocker, Aadhaar)
- Video KYC verification
- Instant account activation
- Virtual debit card issued
Services Offered
| Service | Examples |
|---|---|
| Savings Account | Fi, Jupiter |
| Current Account | Razorpay, Open |
| Loans | Slice, Uni |
| Investments | Groww, INDmoney |
Regulatory Framework
- RBI-regulated (through partner banks)
- Partner bank responsible for deposits
- PPI license for wallets
- Compliance with KYC, AML
Consumer Rights
- Deposit insurance (via partner bank)
- Transparent fee structure
- Data privacy protection
- Grievance escalation process