Best Online Banks in India
In India, online banks are widely requested and grow in number every year. These companies are also called virtual or digital banks, as well as neobanks. They are special in that they do not have physical offices, so all transactions are performed online through a website or mobile app. All a client of a digital bank needs is a smartphone with an internet connection, and then he can use any banking services.
A comparative review of such institutions shows that the services they deliver differ in quality. That is why a potential client wonders which online bank in India to choose. Besides, many people have only heard of neobanks but never used them. In this article, prepared by the Traders Union experts, you will learn which virtual banks in India offer the most favorable conditions and where it is best to open an online account.
Start Working with Digital Banks Now with the Wise Bank!What is an online bank?
Virtual banks in India are financial companies that hold licenses for professional activity and are regulated by authorized organizations. Neobanks may be registered in any country since they do not have headquarters or physical offices. It is important for clients that a bank is regulated by CySEC, for instance, or another international agency.
A client of a digital bank in India does not have to prepare documents, stand in lines, or talk to managers in person. Most tasks are automated and carried out with a few taps of a phone screen. Digital banks offer the same services as traditional banks: checking, savings and retirement accounts, loans and microloans, and international transfers.
Some people do not trust neobanks, because they are used to thinking of a bank as a building with constant lines and tons of paper. In fact, internet banking first appeared almost 40 years ago, and the first such bank opened in 1994. Today, 26% of the population of India has online accounts. This number is expected to reach 39% by the end of 2023.
Now, 51% of clients of regular banks already prefer to get one or several services through the internet and not at an office. In India, many digital banks were established locally, and others came from abroad. Technically, there is no difference between them. A bank must be reliable, tested, and regulated.
Services provided by neobanks in India include:
domestic and international transfers;
lending and microlending (overdrafts);
checking, savings, and other types of accounts;
currency conversion in mobile apps;
physical bank cards or smart cards.
👍 Advantages of virtual banks in India:
•Many online banks do not charge monthly fees. They earn on fees for various transactions, such as currency conversion or international transfers. However, even those institutions that have paid plans are cheaper than traditional banks.
•There is no need to visit an office to open an online account in India. All you need is a computer and smartphone with internet access. Registration and verification take only a few minutes. It’s enough to fill out a standard application form, also online, to take out a loan (including a mortgage).
•Clients of neobanks get full control over their finances. Some organizations allow clients to control all of their accounts at once, including accounts at other banks. Users can view detailed statistics on their income and expenses, from savings accounts, etc.
•The best digital banks in India offer favorable conditions for savings accounts. In most cases, withdrawals are free, and client funds never get frozen. Regarding the APY (annual percentage yield), Revolut, for example, offers a good 1.95%, but this is by far not the highest rate among virtual banks.
•Technical support is provided through call centers, chat rooms, and by email. Call centers respond quickly, but most people prefer chat rooms because responses come instantly and, quite often, from bots, so you don’t have to wait for an operator.
•Internet banking provides users with the widest array of services, including various types of accounts, loans, and transfers, but also overdrafts, flexes, accounts, etc. This gives clients more options and a bigger potential for making decisions. Many neobanks also offer investment opportunities. Online banks in India, just like in the rest of the world, apply the best methods of protection of user funds and data. They operate transparently, are regulated by authorized bodies, and some even insure client deposits. Access to user accounts has several layers of protection.
👎 Disadvantages of digital banks in India:
•Fees are low, but there are many of them and they are charged for almost every transaction. For example, nearly all neobanks collect charges for withdrawals from ATMs. Since virtual banks do not have their own ATMs, they have to enter agreements with regular banks.
•There may be difficulties with depositing cash. Not all neobanks in India accept cash through ATMs. Sometimes, you can deposit funds at a post office or with a scanned check, and some companies only accept online transfers.
•The absence of physical offices may be uncomfortable for people who are used to communicating with managers in person. Some banks don’t even have call centers, so all communication takes place in the form of text messages. However, this drawback is quite subjective.
List of digital banks in India with the best conditions
There are currently a few dozen neobanks in India that hold proper permits and licenses. However, people who want to open an online account have to understand that a license does not guarantee favorable conditions.
The only way to determine which institutions are the most convenient to work with is to compare them. But for a person who is not familiar with this field, carrying out such a task could take days or even weeks. For this reason, the Traders Union experts have prepared a list of neobanks in India that can presently be called the best due to low fees, convenient features, and other benefits.
| Regulation in India | Indian rupee | Loan rate | Monthly fee | ||
|---|---|---|---|---|---|
Wise |
Yes |
Yes |
Individual |
No |
|
Bunq |
No |
Yes |
Individual |
0-17.99 EUR, depending on the plan |
|
Revolut |
No |
No |
7.55% |
0-13.99 EUR, depending on the plan |
|
CIT Bank |
No |
Yes |
Individual |
No |
|
SoFi |
No |
No |
From 7.99% |
No |
|
Котак 811 |
Yes |
Yes |
3.5% |
No |
|
Axis Bank ASAP |
Yes |
Yes |
3.6% |
No |
|
Digibank by DBS |
Yes |
Yes |
From 10.99% |
No |
|
IndusInd Bank |
Yes |
Yes |
3.83% |
No |
|
Pockets by ICICI Bank |
Yes |
Yes |
Individual |
No |
Most digital banks in India do not charge monthly fees. If the digit “0” goes first in the “Payment” column, it means that, among other plans, the bank offers a free plan. Also, note that many organizations determine loan rates individually, depending on many parameters. Therefore, it is always best to look for current rates on a bank’s website. As far as Indian rupees go, all banks allow clients to transfer them and convert them to other currencies. However, if you have online accounts with Revolut or SoFi, you can hold funds in U.S. dollars, euros, or other supported currencies, but not in rupees.
Wise
Among the best virtual banks in India, Wise has a special place due to its minimal fees on transfers, including international ones. Other fees are average or below average, compared to its competitor banks. Wise is a typical neobank that operates in the USA, Europe, India, and other regions. It offers multi-currency accounts, which support Indian rupees. There is a built-in converter, and, besides virtual cards, clients can order physical ones. The ATM withdrawal fee is also rather low, just 1.75%, but there is a limit on the maximum amount.
👍 Benefits:
•online accounts support 56 currencies;
•transfers between banks in 80 countries;
•major currency transfers are free of charge;
•accounts for small and medium-sized businesses.
👎 Downsides:
•no loans;
•only a standard account type is available.
Bunq
Some of the digital banks that have a lot of clients in India were founded abroad. Bunq is one of them. It offers numerous unique services and options. For instance, clients can contribute to the improvement of the planet’s ecology. The bank plants a tree for every 100 EUR (or the rupee equivalent) spent by a user. The institution’s accounting is completely transparent, and users can check everything themselves.
Besides that, Bunq has a flexible approach to opening sub-accounts. These are additional accounts, allowing you to make transactions that are impossible in your primary account or, for some reason, inconvenient for you. For instance, you can hold only euros in your primary Bunq account, but dozens of currencies, including the Indian rupee, are available in sub-accounts. This way, clients of this Bunq get a lot more tools to manage their finances.
👍 Benefits:
•several types of accounts for private individuals and legal entities;
•flexible settings for all features and additional options;
•one of the most convenient mobile apps;
•fast responding and competent tech support.
👎 Downsides:
•there is a free plan, but it does not include many features;
•Bunq charges many additional fees that other neobanks don’t.
Revolut
Revolut is one of the world’s largest and best-known neobanks, and it is regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Being one of the best digital banks in India, Revolut is viewed by many as a model, although it is not regulated locally (the FCA and the PRA are British bodies). The bank offers different types of accounts, as well as domestic and international transfers. There are typical internet banking features, including accounts, overdrafts, and full-fledged loans, e.g., favorable mortgages with low interest. Many regard Revolut as advanced and innovative, which is not far away from the truth.
👍 Strong points:
•quick transfers globally;
•built-in currency converter;
•several dozen supported currencies;
•free-of-charge ATM withdrawals.
👎 Downsides:
•the free plan is inconvenient due to its limits;
•additional charges on currency conversion and exotic currencies.
CIT Bank
This bank operates in almost all regions of the world, so you can easily open an account with it in India as well. It offers accounts for private individuals and businesses. CIT Bank pays one of the highest APYs on savings accounts: 4.25%, but the initial deposit should be at least $1,000 (or another currency equivalent). The APY on standard savings accounts is 3.25%.
CIT Bank offers one of the widest ranges of loan products in India, which only SoFi can match. There are student and consumer loans, mortgages, etc. As to the rest, it’s a standard digital bank that allows clients to hold funds in various currencies, make international payments, and easily track their financial flows with a mobile app.
👍 Benefits:
•no monthly fees or paid plans;
•up to $15 cash back per month on ATM withdrawals;
•several levels of interest rates.
👎 Drawbacks:
•no partner ATMs;
•tech support is not around-the-clock.
SoFi
SoFi is deemed one of the best virtual banks in India because it offers a full list of internet banking services without monthly fees. Commissions are average and below average. There is a $10 welcome bonus and automated improvement of clients’ credit scores. The bank offers a unique opportunity: a free investment account, to which a random stock of shares worth $1,000 is transferred if simple conditions are met.
SoFi is widely known for its numerous loan options. You can take out microloans, consumer loans, mortgages, student loans, and business loans. Every loan program has its benefits and special aspects. Cash back on credit cards is 3% (for favorite categories). Clients can refund student and auto loans.
Another reason this digital bank is popular in India is that it offers favorable conditions for various types of insurance: life, health, home, car, etc. The mobile app has many tools for the arrangement and control of financial flows. It is not easy to get a handle on them right away, but usually, in a half hour, a client already understands very well which features he will use.
👍 Advantages:
•many types of account for various purposes;
•a vast array of loan products;
•high APY on savings;
•relatively low fees.
👎 Disadvantages:
•to receive high interest on a deposit, you have to add funds to it every month;
•high fees for ATM withdrawals outside of the partner network.
Kotak 811
In many ratings, this neobank bank is called the best in India. With Kotak 811, you can open an online account and get a virtual debit card in a matter of seconds. Credit cards can be ordered for 299 rupees, and they do not have to be renewed. Savings accounts do not require regular deposits. The APY is 4%. In total, the bank offers over 180 features, including additional accounts, international transfers, check scanning, and payment tracking. The mobile app is simple and convenient, with no extras.
👍 Strong points:
•clients receive unique bonuses because the bank has many partners;
•flexible savings accounts with high APYs;
•various account types that are easy to manage with an app.
👎 Downsides:
•no joint accounts or jointly holding funds;
•ATM withdrawals are not available in some plans.
ASAP (Axis Bank)
In lists of digital banks in India, Axis usually goes right after Kotak 811 because of their similar features. This neobank does not charge monthly fees either and allows you to get a virtual debit card. Axis offers 6 deposit types and more than 10 loan solutions, such as home, student, business, auto, etc. Clients are provided with several investment options, including mutual funds and active investments in Forex. Axis is regulated by the Reserve Bank of India.
👍 Advantages:
•1% additional cash back;
•up to 45% cash back on transactions via Grab Deals;
•over 250 online banking services;
•virtual cards are available right after account opening.
👎 Disadvantages:
•account verification may take several days;
•there are minimum balance requirements.
Digibank (DBS)
Digibank is on every list of the best online banks in India due to its numerous features and low fees. There is no monthly fee. The bank offers several types of savings accounts, as well as investment and loan solutions. The APY on fixed-term deposits is 7.24%, and the APY on standard savings accounts is up to 5%. International transfers are completed very quickly and free of charge. There is also a system of bonus points, which you can spend while making online purchases from Digibank’s partners.
👍 Strong points:
•flexible settings for saving plans;
•debit cards with additional options;
•full control of financial solutions;
•loans for various purposes with low APRs.
👎 Downsides:
•you need to keep your account balance at a certain level to get additional benefits;
•no cashless funds depositing (only through banks or ATMs).
IndusInd Bank
This bank offers many special options for private individuals. You can open various account types and use loan and investment programs. Clients can invest in mutual funds, government securities, gold bonds, etc. The bank offers several card types, including debit, prepaid, and Forex cards.
👍 Benefits:
•numerous options and personalized financial offers;
•favorable loan programs with low rates;
•Forex cards and other solutions for foreign currency transactions.
👎 Drawbacks:
•you need to keep a certain balance in your savings account;
•complicated management of several user accounts.
Pockets by ICICI Bank
This is an electronic wallet powered by Visa cards. It has all the main features of internet banking and is managed through the website or app. This virtual bank is very popular due to its simplicity and convenient options. Clients can make domestic and international transfers, as well as purchases at offline and online stores.
Note that Pockets is not an independent neobank, but a subdivision of the traditional ICICI Bank. In fact, it’s a major advantage when a digital bank is created based on a traditional banking institution. Parent companies guarantee the quick and reliable operation of their subsidiaries. However, Pockets does not allow you to take out loans or use several other internet banking features.
👍 Advantages:
•cooperation with most banks worldwide;
•numerous bonus programs;
•quick responses from tech support;
•convenient mobile app;
•high level of protection.
👎 Disadvantages:
•new clients must complete the KYC (Know Your Client) procedure;
•ID verification may take several days;
•limits on bonus rewards.
Best online banks in India with low fees
Digital banks in India offer different conditions. Most provide loans and savings accounts, but the rates on them are not the same. For many users, commissions and fees are a priority question. Some organizations offer good services, but charge high fees that naturally drive clients away. Additional charges may prevent you from choosing a bank, even if it offers many useful options and a high APY on savings. The table below provides some of the top neobanks in India with their current primary fees. A comparison of competing companies helps you decide which one is better for you, in terms of fees.
| Overdraft fee | ATM withdrawal fee | International transfer fee | Foreign exchange fee | |
|---|---|---|---|---|
Wise |
No |
0.99 GBP in the U.K., 2.25 GBP + 4% abroad |
0.3-3.5% |
From 0.3% |
Bunq |
No |
0% on up to 250 EUR per month, then 3% |
No |
3% |
Revolut |
No |
0% on up to 6 withdrawals, then 1.5 GBP |
From 0.5% |
From 2.5% |
SoFi |
No |
0% within the Allpoint network; $2.5-5 from other ATMs |
Individual |
0.2% |
CIT Bank |
No |
0% from partner ATMs; 1% from other ATMs |
0% or $35 per transfer, depending on the account type |
Individual |
Kotak 811 |
10.99-20.99% |
0% on 5 withdrawals, then 20 rupees |
150 rupees + 3.5% if the transfer is not in rupees |
Up to 1% + fixed amount that depends on the exchange amount |
Axis Bank ASAP |
Depends on account |
20 rupees in India; 125 rupees in other countries |
3.50% of the transfer amount |
1% |
Digibank by DBS |
Individual |
5 free withdrawals from partner ATMs, 3 free withdrawals from other ATMs, then 21 rupees |
0% or 500 rupees, depending on the transfer direction |
0.018-0.18% + 45-990 rupees, depending on the exchange amount |
IndusInd Bank |
Individual |
5 free withdrawals, then 20 rupees in India and 125 rupees in other regions |
500-1,000 rupees per transfer |
Individual |
Pockets by ICICI Bank |
Individual |
5 free withdrawals, then 20 rupees |
From 1,500 rupees |
Individual |
Best neobanks in India with savings accounts
Wise
A review of digital banks in India clearly shows that this neobank offers the most favorable conditions in the context of savings options. Wise provides 7 account types for funds accumulation. Depending on the account type, the APY is up to 2.75%, which is significantly higher than the market average. There are also savings accounts with variable rates. Monthly fees do not exceed 0.55%. Wise offers teen accounts, which are managed by adults. In addition to being regulated by the FCA, this neobank supports FSCS (Financial Services Compensation Scheme), which is why all deposits are insured in amounts of up to 85,000 GBP. Also, note the unique Assets investment program, which allows clients to invest in diversified funds. As of the second half of 2023, returns on such funds exceed 13%.
Bunq
Bunq is considered to be one of the best neobanks in India largely due to its savings accounts offered on rather beneficial terms. The initial APY is 0.27%, but the company does not charge additional fees, and the APY may be increased later. For example, it will rise if there are 10,000 EUR (or another currency equivalent) or more in the balance. Clients can be sure about the protection of their funds. Bunq insures every deposit for up to 100,000 EUR since it operates under the aegis of the Central Bank of the Netherlands. Note that there are no limits on minimum or maximum deposits. Account openings take no more than 5 minutes and there are no additional reviews. Most importantly, funds in savings accounts are never blocked, so clients can withdraw them anytime.
Top 6 Apps to Send Money AnonymouslyBest digital banks in India for investing
SoFi
This neobank is included in all lists of the top virtual banks in India, among other reasons, because it has one of the best investment programs. SoFI offers several solutions for passive and active accumulation of capital. Clients can invest money in securities, ETFs, and IPOs free of charge. Around 30 most requested cryptocurrencies are available for trading. The bank offers automated investing (also for free). You can make investments using the same app with which you manage your accounts.
Revolut
Although it is not regulated by the Reserve Bank of India and you cannot hold Indian rupees in your primary account, Revolut has been one of the most popular neobanks in India for several years. One of the reasons is that it offers a large number of assets for investing: stocks, commoditiesv, cryptocurrencies, etc. Investments are made through an app with a few taps on the screen. Fees are low and transparent, and you can view detailed statistics on every solution. There is a special feature: when the price of an asset reaches a specified level, you receive an alert on your phone.
FAQ
What is an online bank?
Every online bank in India is an independent financial institution, which offers the same services as traditional banks, but without a physical office such as international transfers, mortgages, adding funds to savings accounts, etc. All these things can be done through a mobile app.
Can you trust digital banks in India?
Neobanks that are not regulated by the Reserve Bank of India operate under the aegis of international regulators. These are official banking institutions that govern financial activities. The list of neobanks provided in this Traders Union article includes only those companies that have been in business for many years. They operate transparently and fulfill all obligations to their clients.
What makes virtual banks better than regular ones?
The virtual banks in India discussed in this article clearly demonstrate their advantages. You don’t need to go anywhere, gather documents, stand in lines, or talk to managers. Any transaction is initiated in a matter of minutes with a few taps on a smartphone screen.
Do the best online banks in India have downsides?
The main problem with most neobanks is the absence of proprietary ATMs, which is why there are fees for cash withdrawals. But there are exceptions: some neobanks offer a small number of free withdrawals per month. Another drawback is the limited number of deposit methods. Deposits cannot always be made through ATMs, by mail, or by check.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.