India does not license standalone digital banks — neobanks like Fi Money, Jupiter, Niyo, and Open operate as mobile-first front-ends on top of a licensed partner bank (e.g. Jupiter and Fi Money both partner with Federal Bank), offering zero-balance savings accounts and modern apps rather than being independently regulated banks. Niyo in particular markets features aimed at international travelers/NRIs. As of 2026, several neobanks face profitability pressure (e.g. Jupiter reported a net loss against modest revenue in FY24), so account holders are ultimately protected by the underlying licensed bank's deposit insurance, not the neobank brand itself.
India has no independently licensed 'digital-only bank' — neobanks operate as an app layer on top of a licensed partner bank (e.g. Federal Bank for Jupiter and Fi Money).
Popular neobanks: Fi Money, Jupiter, Niyo, Open, FamPay — offering zero-balance savings accounts and modern digital UX.
Niyo is specifically positioned for international travelers and NRIs with multi-currency features.
Deposit protection comes from the underlying licensed partner bank, not the neobank brand — worth confirming which bank actually holds the account before relying on one.
Common Mistakes
Assuming a neobank is itself a licensed, independently regulated bank — deposit safety actually rests with its underlying partner bank.
Choosing a neobank purely for app design without checking whether it supports NRI/foreign-national account opening at all.