Online accounts and neobanks in India

How online accounts and neobanks work in India

Online business accounts in India come in two broad groups. The first is the digital banking offered directly by licensed banks such as ICICI Bank, HDFC Bank, Axis Bank, and Kotak Mahindra Bank, where the account sits inside the regulated bank. The second is fintech platforms, often called neobanks, such as RazorpayX and Open. As of 15 May 2026, India does not grant a standalone neobank licence, so these platforms do not hold deposits themselves. They arrange a current account with a licensed partner bank and add software on top. Confirm who holds your funds with the provider.

The licence point

This is the most important thing to understand. When you open with RazorpayX or Open, the current account is issued by a partner bank such as ICICI Bank, Axis Bank, RBL Bank, YES Bank, Kotak Mahindra Bank, SBM Bank, or Equitas Small Finance Bank, and it follows that bank's rules and the Reserve Bank of India framework. The platform provides the interface and the workflow, not the banking licence. Eligible deposit protection applies at the partner bank.

What they tend to do well

The platforms usually open faster than a branch led process and layer business software on the account, including payouts, payroll, vendor payments, tax payments, and corporate cards. Some advertise no minimum balance, while a bank current account often asks for a minimum average balance. As of 15 May 2026, pricing and features differ between providers, so verify the current terms.

What to check before you open one

When comparing online business accounts in India, check these points, as of 15 May 2026. Verify with the provider

• Which licensed bank issues the account, since that bank holds your money and its rules apply.
• Any minimum balance rule, the monthly or plan fee, and the per transaction charges.
• Whether the workflow features you need, such as payouts, payroll, or corporate cards, are included or cost extra.