Category Archives: Banking

Basics understanding of Banking

Banks will Remain Closed for 15 Days in April Month, Check Details


Bank Holiday 2023: RBI has released list of bank holiday for month of April 2023. If you are planning to visit bank for any work then you need to plan in advance as bank will remain closed for the 15 days in April 2023.

Bank Holiday April 2023 1
Bank Holiday April 2023

List of Bank Holidays 2023

Date DayStatusReason
1st April, 2023SaturdayClosedAnnual Maintenance
2nd April, 2023SundayClosedSunday
4th April, 2023TuesdayClosedMahavir Jayanti
5th April, 2023WednesdayClosedBabu Jagjivan Ram Birthday(Telengana)
8th April, 2023SaturdayClosedSecond Saturday
9th April, 2023SundayClosedSunday
14th April, 2023FridayClosedBabasaheb Ambedkar Jayanti/Bohag Bihu
15th April, 2023SaturdayClosedVishu/Bohag Bihu/Himachal Day/ Bengali New Year
16th April, 2023SundayClosedSunday
18th April, 2023TuesdayClosedShab-e-Qadr
21st April, 2023FridayClosedEid-ul-Fitr(Ramadan Eid)/Gadiya Puja/Jumat-ul-Vida
22nd April, 2023SaturdayClosed4th Saturday of Month
23rd April, 2023SundayClosedSunday
30th April, 2023SundayClosedSunday

Bank Holidays in March 2023

DateDayStatusReason
25th March, 2023SaturdayClosed4th Saturday
26th March, 2023SundayClosedSunday
30th March, 2023ThursdayClosedRam Navami

RBI Official Link

For more information about bank holidays, you can also visit official website of Reserve Bank of India at https://rbi.org.in/Scripts/HolidayMatrixDisplay.aspx. You will find details for the all holiday here.

Also read Big Relief to Employees, Government took Big Decision on NPS

Linking of PAN-AADHAR: You are going to Loose Your PAN Registration if You don’t do This


Linking of PAN-AADHAR

Linking of PAN-AADHAR: The deadline to link your Permanent Account Number (PAN) and Aadhaar is March 31, 2023. Do note that now there is a penalty applicable for linking PAN with Aadhaar. If you link your PAN with your Aadhaar now, then you are liable to pay a late fee of Rs 1,000 as the last date for linking without penalty was June 30, 2022 which is already past.

Why You Should Link Your PAN and Aadhaar Card Before March 31, 2023

Linking of PAN-AADHAR: PAN (Permanent Account Number) and Aadhaar (Unique Identification Number) are two important documents that every Indian citizen should have. They serve as identity proofs and also help in various financial transactions such as filing income tax returns, opening bank accounts, applying for loans, etc.

However, having these documents is not enough. You also need to link your PAN and Aadhaar card before March 31, 2023. This is a mandatory requirement as per Section 139AA of the Income Tax Act 1961. If you fail to do so, you may face some serious consequences such as:

  • Your PAN will become invalid and you will not be able to use it for any purpose.
  • You will not be able to file your income tax returns or claim refunds.
  • You may have to pay a penalty of up to Rs 10,000 for violating the law.
  • You may face difficulties in availing various government schemes and subsidies that require Aadhaar authentication.

Therefore, it is advisable to link your PAN and Aadhaar card as soon as possible. Here are some easy ways to do it:

How to Link your PAN and Aadhaar Card Online

Linking of PAN-AADHAR: One of the simplest ways to link your PAN and Aadhaar card online is through the official website of Income Tax Department www.incometax.gov.in. You can also use other websites or apps that offer online PAN-Aadhaar linking services such as HDFC Bank or UTIITSL.or

https://eportal.incometax.gov.in/iec/foservices/#/bl-link-aadhar

To link your PAN and Aadhaar card online, you need to follow these steps:

  • Visit the website or app that offers online PAN-Aadhaar linking service.
  • Enter your PAN and Aadhaar number along with other details such as name, date of birth, gender etc.
  • Verify your details by entering an OTP (One Time Password) sent to your registered mobile number or email id.
  • Submit the request and get a confirmation message on successful linking.

How to Link your PAN and Aadhaar Card Through SMS

Another convenient way to link your PAN and Aadhaar card is through SMS. You can send an SMS from your registered mobile number to either 567678 or 56161 with the following format:

UIDPAN<space><12 digit Aadhaar number><space><10 digit PAN>

For example: UIDPAN 123456789012 ABCDE1234F

You will receive an SMS confirmation on successful linking.

How to Link your PAN and Aadhaar Card Through Web Portal

A third option to link your PAN and Aadhaar card is through a web portal provided by Income Tax Department eportal.incometax.gov.in or incometaxindiaefiling.gov.in. This option requires you to register on the portal with your PAN as the user id if not already done.

To link your PAN and Aadhaar card through web portal, you need to follow these steps:

  • Log into the portal with your user id, password and date of birth.
  • A pop-up window will appear to link PAN with Aadhaar or go to ‘Profile Settings’ on the Menu bar and click on Link Aadhaar.
  • Enter your details such as name, date of birth, gender etc. as per both documents.
  • Tick on ‘I agree’ checkbox after verifying all details carefully
  • Click on ‘Link Now’ button You will get a message stating that “Your request has been submitted successfully”.

Benefits of linking your PAN and Aadhar card

Linking of PAN-AADHAR card has many benefits such as:

  • Simplifying the process of filing income tax returns
  • Reducing errors in verification of identity
  • Preventing frauds and misuse of documents
  • Enhancing transparency in financial transactions

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What will happen if you don’t link your PAN and Aadhaar by March 31, 2023?

Here is a possible article about the consequences of not linking PAN with Aadhaar:

The government has made it mandatory for all taxpayers to link their Permanent Account Number (PAN) with their Aadhaar number by March 31, 2023. This is to prevent tax evasion and frauds using multiple PAN cards. If you have not linked your PAN and Aadhaar yet, you should do it as soon as possible to avoid any inconvenience and penalty.

According to the Income Tax Department, if you do not link your PAN and Aadhaar before March 31, 2023, your PAN will become inactive. This means that you will not be able to use your PAN for any financial transactions where quoting of PAN is mandatory. Some of these transactions are:

  • Filing income tax returns
  • Opening a bank account
  • Applying for a loan or credit card
  • Buying or selling property or shares
  • Making cash deposits or withdrawals above Rs 50,000
  • Investing in mutual funds or insurance

If you link your PAN to your Aadhaar after March 31, 2023, you will have to pay a late fee of Rs 1,000 as per Section 234H of the Income Tax Act. This fee will be in addition to any other penalty that may be imposed by the Income Tax Department for non-compliance.

Therefore, it is advisable to link your PAN and Aadhaar before the deadline to avoid any hassle and extra cost. You can link your PAN and Aadhaar online through the e-filing portal of the Income Tax Department.

Who are Exempted from PAN-AADHAR Linking

However, some categories of people are exempted from linking their PAN with Aadhaar. These are:

  • Non-residents as per Income Tax Act
  • Individuals above 80 years of age
  • Individuals residing in Assam, Jammu & Kashmir and Meghalaya
  • Individuals who do not have an Aadhaar number or have applied for one but have not received it yet

If you belong to any of these categories, you can furnish a copy of your passport, voter ID card or driving license instead of Aadhaar while filing your income tax returns.

To check whether your PAN and Aadhaar are linked or not, you can visit https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/AadhaarPreloginStatus.html and enter your PAN and Aadhaar number. You will get a confirmation message if they are linked successfully.

Linking your PAN and Aadhaar is a simple process that can save you from a lot of trouble later on.

So don’t delay it any further and do it today!

Good News for SBI-HDFC-ICICI Bank Customers- RBI have made these change in UPI Transaction Limit


UPI Transaction Limit: Unified Payments Interface (UPI) has become one of the most popular modes of digital payments in India, offering a quick, convenient, and secure way to transfer money between bank accounts. However, different banks have set different transaction limits on UPI transfers, which can vary based on factors such as the type of bank account, the user’s transaction history, and the purpose of the transfer. In this article, we will discuss the transaction limits set by some of the major banks in India on UPI transfers.

Transaction Limit of Banks on UPI

UPI transactions also have certain limits that vary across banks. Depending on the bank, it could be anywhere from INR 10,000 to INR 1 lakh per transaction. For instance, the maximum amount you could transfer in a single transaction using the BHIM UPI app is INR 1 lakh, and you could only transfer to a maximum of INR 1 lakh in a day. Some banks also have limits on the number of transactions per day or per month.

  1. State Bank of India (SBI): SBI, the largest bank in India, has set a daily transaction limit of Rs. 1 lakh per day on UPI transfers, with a maximum of 10 transactions per day. However, the bank may allow higher transaction limits based on the user’s transaction history and other factors.
  2. HDFC Bank: HDFC Bank has set a daily transaction limit of Rs. 1 lakh per day on UPI transfers, with a maximum of 10 transactions per day. However, the bank may allow higher transaction limits based on the user’s transaction history and other factors.
  3. ICICI Bank: ICICI Bank has set a daily transaction limit of Rs. 1 lakh per day on UPI transfers, with a maximum of 10 transactions per day. However, the bank may allow higher transaction limits based on the user’s transaction history and other factors.
  4. Axis Bank: Axis Bank has set a daily transaction limit of Rs. 1 lakh per day on UPI transfers, with a maximum of 20 transactions per day. However, the bank may allow higher transaction limits based on the user’s transaction history and other factors.
  5. Punjab National Bank (PNB): PNB has set a daily transaction limit of Rs. 50,000 per day on UPI transfers, with a maximum of 10 transactions per day. However, the bank may allow higher transaction limits based on the user’s transaction history and other factors.
  6. Kotak Mahindra Bank: Kotak Mahindra Bank has set a daily transaction limit of Rs. 1 lakh per day on UPI transfers, with a maximum of 10 transactions per day. However, the bank may allow higher transaction limits based on the user’s transaction history and other factors.

Benefit of UPI Transaction Limit by Banks

The benefit of UPI transaction limit by banks is that it helps to prevent fraud and misuse of the system. By imposing a limit on the amount and frequency of transactions, banks can reduce the risk of unauthorized transactions or cyberattacks. It also helps to maintain the stability and efficiency of the UPI network by avoiding congestion or overload.

However, some users may find the UPI transaction limit by banks inconvenient or restrictive. For example, if they want to make a large purchase or pay a high bill using UPI, they may have to split their payment into multiple transactions or use another mode of payment. They may also face issues if they exceed their daily or monthly limit due to multiple transactions with different merchants or service providers.

Therefore, UPI transaction limit by banks has both advantages and disadvantages for users. It is important for users to be aware of their bank’s UPI transaction limit and plan their payments accordingly. They can also check with their bank if they can increase their limit based on their usage pattern and credit history.

These transaction limits are subject to change at the discretion of the banks, and may also depend on the type of bank account, the user’s transaction history, and the purpose of the transfer. It is advisable to check with the respective bank’s customer service or website for the latest transaction limits before making a UPI transfer.

Also read: EPF- Employee Provident Fund Explained

Key Changes Made by RBI for UPI Transaction

There are a few new rules of RBI on UPI transaction that have come into effect recently or will come into effect soon. Here are some of them:

  • The threshold for the contactless card transactions through cards and UPI will be increased from Rs 2,000 to Rs 5,000 from January 1, 2021. This is done to encourage digital payment which is truly safe and secure.
  • The transaction limit for payments through UPI for retail buying of government securities and IPO applications will be enhanced from Rs 2 lakh to Rs 5 lakh. This is proposed to facilitate greater retail participation in these instruments.
  • The customers will have to provide additional factor authentication (AFA) for recurring online transactions using cards, wallets or UPI above Rs 5,000 from October 1, 2021. This is done to improve customer convenience and safety while making recurring payments.
  • The Reserve Bank has launched UPI123Pay – Option to make Unified Payments Interface (UPI) payments for feature phone users on March 8, 2022. This is done to promote financial inclusion and digital literacy among the masses.

In conclusion, UPI has revolutionized the way digital payments are made in India, but the transaction limits set by different banks can sometimes pose a challenge for users. It is important to be aware of these limits and plan transactions accordingly to avoid any inconvenience or delays. With UPI usage continuing to grow, it is likely that these transaction limits will also evolve to keep up with the changing needs of customers.

Loan Restructuring Vs. Loan Refinancing: A Guide for Borrowers

Loan Restructuring Vs. Loan Refinancing: Both terms are quite confusing and can be understand as interchangeable or synonym for each other. Well it is not as both terms are quite different and serve specific purpose. In this article we will understand both of term in details so that you will not confuse in future.

Loan Restructuring Vs. Loan Refinancing: A Guide for Borrowers

What is Loan Restructuring?

Consider an example that, a small business owner in India who operates a clothing store may have taken out a loan to purchase inventory, but due to the COVID-19 pandemic, the store has experienced a significant reduction in footfall and revenue. The business owner may be unable to meet the loan repayment schedule and would have to consider loan restructuring as an option.

Loan restructuring is the process of renegotiating the terms of a loan between the lender and borrower. This can include changes to the interest rate, payment schedule, or the length of the loan. The goal of loan restructuring is to make the loan more affordable for the borrower, allowing them to continue making payments and avoid defaulting on the loan.”

Let’s Understand Further-

  • Reason for Restructuring :
    • a) Financial Hardship: One of the most common is financial hardship. If a borrower has experienced a loss of income or unexpected expenses, they may no longer be able to afford the terms of their loan.
    • b) Difference in Interest Rate: Some borrowers may have taken out a loan at a higher interest rate than they could have qualified for at the time, and wish to refinance for a lower rate.
  • Who will Benefit: Loan restructuring can be beneficial for both the lender and the borrower.
    • a) For the lender– it can help prevent default on the loan and reduce the risk of losing money.
    • b) For the borrower– it can make loan payments more affordable and prevent the negative consequences of default, such as legal action.
  • Options under Restructuring for Individual: There are several options available for loan restructuring.
    • a) Term Modification: One of the most common restructuring is a modification, in which the lender agrees to change the terms of the loan.
    • b) Reduced interest rate
    • c) Extended loan term
    • d) Change in payment schedule
  • Options under Restructuring for Businesses: For Businesses loan restructuring can include
    • a) Debt forgiveness or debt-equity swaps– Debt forgiveness is when a lender forgives a portion of the debt, which can be beneficial for businesses that are struggling to make loan payments.
    • b) Debt-equity swaps– A debt-equity swap is when a lender takes an ownership stake in the business in exchange for debt forgiveness. This can be beneficial for businesses that need to raise capital but may not be able to qualify for a loan.

Under the RBI’s loan restructuring scheme, the business owner could request a reduction in the interest rate or an extension of the loan repayment period, making the loan more affordable and manageable.

Overall, loan restructuring is an important tool for borrowers and lenders to help manage loan payments and avoid default. It can be beneficial for both parties, allowing borrowers to make loan payments more affordable and lenders to reduce the risk of losing money. If you are experiencing financial hardship or wish to lower your interest rate, consider reaching out to your lender to discuss loan restructuring options.

It’s worth noting, that loan restructuring is not always an option, the lender might not agree to do so and the borrower might not qualify. It’s important to understand the terms and conditions of the loan agreement and the lender’s policies on loan restructuring before making any decision. It’s also important to seek professional advice, before making any decision regarding loan restructuring.

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Loan Restructuring in Indian Businesses

In India, loan restructuring has become a common practice for businesses that have been impacted by the economic downturn caused by the COVID-19 pandemic. Many businesses have seen a significant reduction in revenue and cash flow, making it difficult for them to meet their loan obligations. In response, the Reserve Bank of India (RBI) has introduced several measures to help businesses restructure their loans.

One such measure is the loan restructuring scheme announced by the RBI in August 2020, which allows eligible borrowers to restructure their loans without being classified as defaulted. Under this scheme, borrowers can request a one-time restructuring of their loans, which can include changes to the interest rate, repayment period, and other terms and conditions.

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What is Loan Refinancing?

Consider a situation, a home-owner in India may have taken out a home loan at a high-interest rate several years ago. Over time, interest rates have dropped, and the borrower may wish to refinance the loan to take advantage of the lower interest rate. By refinancing the loan, the borrower can lower their monthly payments and ultimately pay less interest over the life of the loan.

Loan refinancing is the process of replacing an existing loan with a new one. The new loan typically has different terms and conditions than the original loan. The goal of loan refinancing is to improve the overall financial situation of the borrower, by reducing the interest rate, monthly payments, or overall cost of the loan.”

Lets Understand Further-

  • Reason for Refinancing: Refinancing can be done for a variety of reasons,
    • a) Lower Interest Rate– the most common reason for refinancing is being to lower the interest rate and monthly payments. For example, if a borrower initially took out a loan at a high-interest rate, they may wish to refinance to a loan with a lower interest rate, which will result in lower monthly payments.
    • b) Increase Time Duration: Additionally, some borrowers may want to refinance to a loan with a longer repayment term, which will also lower the monthly payments.
    • c) Consolidation- Another reason to refinance is to consolidate multiple loans into a single loan, this can make it easier to manage the loan payments and simplify the borrower’s financial situation. This is especially useful when borrowers have multiple loans with different interest rates and repayment terms. By consolidating these loans into a single loan, borrowers can take advantage of a lower interest rate and more favorable repayment terms.
  • Options Under Loan Refinancing: There are different types of loan refinancing options available, such as
    • Home Mortgage Refinance
    • Student Loan Refinance,
    • Auto Loan Refinance,
    • Personal Loan Refinance and
    • Business Loan Refinance.

Each type of loan has its own set of terms and conditions, and borrowers should consider the specific needs and goals of their financial situation before deciding which type of loan to refinance.

In recent years, The Reserve Bank of India (RBI) has introduced several measures to help borrowers refinance their loans. For example, the RBI has introduced a scheme for priority sector lending that allows eligible borrowers to refinance their existing loans with more favorable terms and conditions. Additionally, the RBI has introduced a scheme for external commercial borrowings (ECBs) that allows borrowers to refinance their existing ECBs with more favorable terms and conditions.

Also read EPF- Employee Provident Fund Explained

Pro & Cons of Loan Restructuring

It is very important to consider various factor before opting for Loan restructuring or Loan refinancing as there are various factors involved with it. Some of the pro and cons associated with loan restructuring are-

Pros of Loan Restructuring:

  1. Reduced monthly payments: By restructuring a loan, the borrower may be able to reduce their monthly payments, which can make it easier to manage their debt and make ends meet.
  2. Lower interest rate: Restructuring a loan can also mean a reduction in the interest rate, which can result in lower overall cost of the loan.
  3. Avoiding default: For borrowers who are struggling to make their loan payments, loan restructuring can help them avoid default and prevent negative consequences such as foreclosure or bankruptcy.
  4. Flexibility: Loan restructuring allows borrowers to customize the terms of their loan to fit their specific needs and financial situation.

Cons of Loan Restructuring:

  1. Cost: Restructuring a loan can come with additional costs such as legal fees, appraisal costs, and other charges.
  2. Credit score impact: Restructuring a loan can have a negative impact on a borrower’s credit score, particularly if the loan was restructured to avoid default.
  3. Long-term consequences: While loan restructuring can provide short-term relief, it may not address the underlying financial issues that led to the need for restructuring in the first place.
  4. Not always possible: Some borrowers may not qualify for loan restructuring, particularly if their credit score is too low or their financial situation is too dire.
  5. Depend on the lender: Loan restructuring is dependent on the lender’s policies and willingness to work with the borrower.

It’s important to weigh the pros and cons of loan restructuring before making a decision. Additionally, borrowers should seek professional advice and consider the terms and conditions of the loan agreement and the lender’s policies on loan restructuring before making any decision.

How to Navigate Loan Restructuring and Loan Refinancing

Navigating loan restructuring and loan refinancing in the Indian market can be a complex process, but there are a few steps that can help guide you through the process.

  1. Understand your options: Before you begin the process, it’s important to understand the different options available to you. This includes loan restructuring, loan refinancing, and debt consolidation.
  2. Review your current loan: Take a close look at your current loan and the terms and conditions that come with it. This will help you understand the implications of loan restructuring or refinancing.
  3. Assess your financial situation: Before you make a decision, it’s important to assess your current financial situation and understand your ability to repay the loan.
  4. Seek advice: Consult with a financial advisor or a loan specialist to get expert advice on the best course of action.
  5. Compare offers: Once you have a clear understanding of your options, it’s important to compare offers from different lenders to find the best deal.
  6. Negotiate with your lender: After you have chosen the best option, negotiate with your lender to get the best possible terms and conditions.
  7. Review the terms and conditions: Carefully review the terms and conditions of the loan before signing any agreements.
  8. Keep track of your payments: Keep track of your payments and make sure that you are keeping up with the new repayment schedule.

It is always recommended to consult with a financial advisor or a loan specialist before making any decision.

Impact of Loan Restructuring and Loan Refinancing on Business Operations and Growth

Loan restructuring and loan refinancing can have both positive and negative impacts on a business’s operations and growth. Some potential impacts include:

Positive impacts:

  1. Improved cash flow: By restructuring or refinancing a loan, a business may be able to reduce its monthly payments and improve its cash flow.
  2. Increased financial flexibility: Restructuring or refinancing a loan can provide a business with additional funds, which can be used to invest in new projects or expand operations.
  3. Reduced interest rates: By refinancing a loan, a business may be able to secure a lower interest rate, which can lead to significant savings over the life of the loan.
  4. Improved credit profile: By successfully restructuring or refinancing a loan, a business may be able to improve its credit profile, which can make it easier to secure financing in the future.

Negative impacts:

  1. Increased costs: Restructuring or refinancing a loan may come with additional costs, such as origination fees or prepayment penalties.
  2. Reduced credit availability: A business may be required to put up collateral or provide additional guarantees in order to secure a loan, which could limit its ability to secure additional financing in the future.
  3. Extended repayment period: Restructuring a loan may result in an extended repayment period, which can lead to additional interest charges over time.
  4. Reduced profitability: If a business is unable to meet the terms of the new loan, it could lead to a reduction in profitability or even business failure.

It is important to weigh the potential positive and negative impacts of loan restructuring or loan refinancing, and consult with a financial advisor before making a decision.

Hope that this article is able to explain both term in detail. Hope you don’t need to opt for these options but if you are going through cash crunch then take advise of financial advisor before choosing these options.

Neo Banks and Their Increasing Popularity in India


With the focus of Indian Government on more and more of digital transaction and adoption of technology in financial sector, lot of digital Bank called Neo Banks are gaining acceptance.

Image Courtesy- Medium

Neo Banks Overview

What is Neo bank

A neo bank, also known as a digital bank or a mobile-only bank, is a type of bank that operates primarily through digital channels and typically has no physical branches. They offer a wide range of banking services, such as current accounts, savings accounts, loans, and credit cards, but they are accessed and managed entirely through a mobile app or website.

Neo banks usually have an app-based interface which allows customers to open an account, transfer money, pay bills, view account details, and perform other banking functions with a few clicks on their mobile devices. They are built on technology infrastructure and leverage on data analytics to provide customers with personalized banking services and experiences.

Difference between Neo Bank & Traditional Bank

With the focus of Indian Government on more and more of digital transaction and adoption of technology in financial sector, lot of digital Bank called Neo Banks are gaining acceptance.

One of the key differences between neo banks and traditional banks is that neo banks don’t have the same regulatory requirements as traditional banks. This allows them to offer more flexible and innovative products and services, such as instant account opening, real-time account monitoring, and cashless payments.

Some of the benefits of neo banks include lower fees, higher interest rates, and better customer service. They also appeal to a younger generation of customers who are more comfortable using digital channels for banking services and are looking for a more personalized and convenient banking experience.

In summary, a neo bank is a digital-only bank that operates primarily through mobile apps and websites, providing customers with a wide range of banking services including current accounts, savings accounts, loans, and credit cards. They leverage on technology and data analytics to offer personalized banking services, have lower fees, higher interest rates, and better customer service compared to traditional banks

How many Neo banks currently operating in India

As of 2021, there were several neo banks currently operating in India. Some notable examples include:

  • Yono SBI (State Bank of India) – a digital-only bank launched by the State Bank of India, the country’s largest public sector bank.
  • Kotak 811 – a digital-only bank launched by Kotak Mahindra Bank, one of India’s largest private sector banks.
  • Paytm Payments Bank – a digital-only bank launched by Paytm, one of India’s largest digital payments companies.
  • Airtel Payments Bank – a digital-only bank launched by Airtel, one of India’s largest telecommunications companies.
  • Digibank by DBS – a digital-only bank launched by DBS Bank, a Singapore-based bank that operates in India.

It is worth noting that the number of neo banks operating in India is likely to change over time as the Indian government continues to encourage the growth of the fintech sector and new players enter the market.

In summary, as of 2021, there were several neo banks operating in India, including Yono SBI, Kotak 811, Paytm Payments Bank, Airtel Payments Bank and Digibank by DBS. However, the number of neo banks operating in India is likely to change over time as the Indian government continues to encourage the growth of the fintech sector and new players enter the market

Pro and cons of Neo bank

Some pros of using a neobank include:

  • Lower fees and better interest rates compared to traditional banks
  • Convenience and accessibility through mobile apps and online banking
  • Additional features such as budgeting tools and savings programs

Some cons of using a neobank include:

  • Limited physical branches and ATM access
  • Limited account options and products compared to traditional banks
  • Limited deposit insurance protection and may be more vulnerable to cyber attack
  • May not have the same level of security and fraud prevention as traditional banks.

How Neo bank benefit Indian consumer and India as whole

Neobanks can benefit Indian consumers by providing them with more convenient and accessible banking options through mobile apps and online platforms. They can also offer lower fees and better interest rates than traditional banks. Additionally, neobanks can provide budgeting tools and savings programs that can help consumers better manage their finances.

Neobanks can also benefit India as a whole by increasing financial inclusion and providing more competition in the banking industry. This can lead to better products and services for consumers, as well as increased innovation in the banking sector. Neobanks can also help to reduce the “unbanked” population in India by making it easier for people to access basic financial services.

However, it’s important to keep in mind that neobanks are relatively new in India and are still in the process of obtaining the licenses. So, their benefits may take time to fully manifest in India.

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