What are Neo Banks? Complete Details!

Table of contents:

> What are Neo Banks?

> Do Neo Banks give their own Account

   number and IFSC Code ?

> Is Neo Banks licensed from RBI ?

> Does your money secure in a Neo Bank?

> Do Neo Banks issue Credit Card and loans?

> Can you withdraw cash with Neo Banks'

   debit card?

What are Neo Banks?

Neo Banks are virtual banks or digital banks which has no physical branch. They partner with a physical banks .

We can say that Neo Banks are a technology layer which provides services with its partner banks to the customers. Many Neo Banks are available in the market and they are offering some great services like a zero balance savings account and also physical debit cards and cheque books. Cheque books are labelled with its partner banks' name.

Do Neo Banks give their own Account number and IFSC Code?

Neo banks don't provide their own IFSC Code and Account number but it's partner banks'.

When you open a account in a neo bank means you are opening account in their partner banks.

There are Many Neo Banks in the market like Fi Money, Jupiter Money, NiyoX etc.

Is Neo banks licensed from RBI (Reserve Bank of India) ?

No, Neo Banks are not licensed from RBI because RBI doesn't consider banks to those banks who controls their transactions fully digital and having not a single physical branch.

But Neo Banks' partner banks have physical branches so the partner banks are licensed from RBI. Because of having license of partner bank, they are providing services to the customers.

Does your money secure in a Neo Bank ?

Yes, Neo Banks'customers are secured upto 5 Lakh Rupees. Not directly but their partner banks' customers are insured by DICGC (Deposit Insurance Credit Guarantee Corporation) upto 5 Lakh . Because of their partner banks are insured hence Neo Banks are also insured .

Do Neo banks issue credit card and loans ?

Yes, Neo Banks can issue Credit Card to their customers. Neo Banks are also providing personal loans to their customers . Their applying system is very simple and hassle free.

You can apply through their Mobile Banking app with proper proof .

Can you withdraw cash with Neo Banks' debit card ?

Yes , You can withdraw cash with their debit card. They are providing very high quality debit cards and many Neo banks are also providing unlimited transactions through their partner banks' physical ATM .