Neo banks in India function precisely like traditional banks, but their overall operating system somehow makes the difference. While traditional banking systems are struck on outdated practices, neobanks are making their presence through digital advancement that not only saves time & money but also lowers the hassles that are common in their traditional counterparts.

Guest post by Dan Radcliffe and Rodger Voorhies, Bill & Melinda Gates Foundation1 India faces a major financial exclusion challenge. According to the 2011 World Bank Global Findex Survey, only 35% of Indian adults have access to a formal bank account and 8% borrowed formally in the last 12 months. The Reserve Bank of India (RBI) Committee on Comprehensive Financial Services for Small Businesses and Low Income Households (or “CCFS”) was tasked with formulating policy recommendations to close this exclusion gap while protecting the stability of India’s financial system and the safety of customers’ deposits. The CCFS report marks a big step forward in India’s financial inclusion deliberations.