On October 31, 2023, the Reserve Bank of India (RBI) issued a master circular on the import of goods and services titled <a href="https://m.rbi.org.in//Scripts/NotificationUser.aspx?Id=12561&amp;Mode=0">Regulation of Payment Aggregator – Cross Border</a>.&nbsp;&nbsp;

According to the circular, the RBI will regulate all Indian entities facilitating online cross-border payments for the import and export of permissible goods and services. Moreover, these entities will be collectively termed Payment Aggregators Cross Border (PA-CB).

The circular comprises guidelines to streamline the existing cross-border payment framework in India. Previously, cross-border transactions were carried out through Online Payment Gateway Service Providers (<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">OPGSPs</a>) as per a circular issued by RBI in 2015.

OPGSPs operate by partnering with an Authorised Dealer (Category I) Bank (AD Bank) and notifying the RBI. According to RBI guidelines, no formal license is needed to function as an OPGSP.

Hence, RBI has issued a circular to establish a concise and clear framework for cross-border payments. RBI will now oversee all cross-border payments in India related to the import and export of goods. The circular applies to PA-CB, PAs, authorised banks and OPGSPs.&nbsp;The PA-CB circular also denotes that there can’t be any new OPGSP.

This blog discusses the key provisions related to the latest RBI circular on the import of goods and services, RBI guidelines for payment gateway, and OPGSP guidelines.

Master Circular on Import of Goods and Services: RBI Bank Guidelines

The following are the key guidelines mentioned in the circular.

The following entities need to adhere to RBI guidelines/instructions provided in the circular.

Here are the key developments included in the new PACB circular.

Categories of Authorisation as per PA-CB Activity&nbsp;

Based on the cross-border payment activity undertaken by the PA-CBs, they can seek authorisation for one of the following three categories.

PA-CB, facilitating cross-border payments for Indian exporters, has to open an Export Collection Account (ECA) with an AD bank.&nbsp;

ECAs can be opened in either Indian currency or foreign currency. In the case of the latter, various ECAs have to be opened for different currencies.

The PA-CBs will credit all export proceeds in the respective ECAs. Additionally, export PA-CBs need to follow the below guidelines:

Similar to export PA-CBs, import PA-CBs have to open an Import Collection Account (ICA) with an AD bank.&nbsp;

They will collect the payment from importers in an escrow account managed by the payment aggregator. It will then be transferred to ICA and will eventually be transferred to the bank account of the foreign merchants.

These entities are allowed to directly onboard foreign merchants, e-commerce marketplaces, or other overseas entities that offer payment aggregation services.&nbsp;

Here are the guidelines Import PA-CBs need to follow.

Those PA-CB who engage in both import and export activities have to comply with the requirements for both Import PA-CB and Export PA-CB.

They also need to ensure that the maximum value per unit of exported or imported goods or services should be ₹25,00,000.

Non-banks who want to provide PA-CB services will have to seek authorisation from RBI. However, before seeking RBI authorisation, it is necessary to register with the Financial Intelligence Unit-India (FIU-IND).&nbsp;

However, RBI has issued the following net-worth criteria for non-banks providing PA-CB services.

The accounts of existing non-bank PA-CB who are unable to meet the net worth requirement will be closed by banks by 31 July 2024.

Snapshot Comparison Between OPGSP Circular (2015) and PA-CB Circular (2023)&nbsp;

Here are the key differences between the OPGSP Circular (2015) and the PA-CB Circular (2023)

Here is the process of seeking approval from RBI for existing or new PA-CBs.

Step 1: Draft the application through Form A, which includes the following parts.

Step 3: The RBI will process the application.

(RBI may raise queries related to various aspects such as shareholding, product processes, etc.)&nbsp;

Step 4: In principle approval from RBI.

Step 5: Filing of system Audit Report

(RBI may raise queries related to SAR audit observations)&nbsp;

Step 6: Final authorisation(state additional conditions that must be complied with)&nbsp;

The evolving cross-border payments environment and the emergence of several OPGSPs and other fintech entities encouraged RBI to issue the circular. Its main purpose is to ensure seamless and more transparent cross-border payment transactions.

Even though regulatory authorities are constantly working on making cross-border payment transactions seamless, transparent, secure, and quicker, businesses often face difficulties in receiving timely payments.&nbsp;

Skydo aims to simplify the cross-border payment landscape for businesses by automating various tasks and helping businesses open foreign bank accounts. <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join Skydo today</a> to streamline your invoicing and financial management activities!

Q1. RBI’s master circular on the import of goods and services and cross-border payments applies to which entities?

Ans. AD banks, PAs, and PA-CBs involved in the online processing/settlement of cross-border payment transactions related to the import and export of goods and services have to comply with the guidelines mentioned in the circular.

Q2. What are various compliances according to RBI payment aggregator guidelines for cross-border payments?

Ans. All PA-CBs have to follow the guidelines provided in the circular dated October 31, 2023. Additionally, they also have to follow the various guidelines for payment aggregators mentioned under a circular issued by RBI on March 17, 2020.&nbsp;The circular includes guidelines related to customer grievance redressal and compliance with Baseline Technology Guidelines to ensure fraud prevention and risk management.

Q3. How can PA-CB seek authorisation for facilitating cross-border payment transactions?

Ans. AD banks do not need to seek authorisation to facilitate cross-border payment transactions. However, a non-bank PA-CB can seek authorisation from RBI by sending the application to the Department of Payment and Settlement Systems (DPSS), RBI, Central Office (CO), by April 30, 2024. PA-CB entities must fulfil the minimum net worth criteria before applying to RBI.

 Know more about RBI's circular that mandates payment aggregators to seek authorization for facilitating cross-border transactions by April 30, 2024.

BI’s PACB Circular: Key OPGSP Updates of 2024 to Note 

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Sukanya

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Whether you’re cold-emailing or responding to a job posting, your email pitch can make or break your chances of landing freelance work.

But writing professional and persuasive mail to clients may have you second-guess how to introduce yourself, showcase your value, and ask for what you want without sounding desperate or pushy.

This guide on how to write an email to a client requesting for project will help you impress any client, potential or existing, and get you more freelance work.&nbsp;&nbsp;

How to write an email to clients - Before You Hit Send

Before you start pitching to offer your <a href="https://www.skydo.com/blog/top-5-new-age-freelance-services-going-to-take-off-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelance services</a>, you need to do some preparation.&nbsp;

Once you’ve prepared, you can start email writing to clients as prescribed in the steps below.

These tips will make your email stand out and increase your chances of getting a positive response.

To help you get started, here are some sample emails asking for business opportunities. Feel free to customise them according to your situation and style, and remember to personalise them as much as possible.

Here’s a sample email to a client asking for work using cold outreach:

Below is a sample email to approach a new client for freelance work after seeing a job post.

Given below is a sample email to the client asking for requirements.

Writing a professional and persuasive email is one of the most effective ways to ask for freelance work and land more clients. However, remember that every client and situation is different, and you need to personalise your email accordingly.&nbsp;

Don’t use generic or template emails that sound like they could be sent to anyone. Instead, do your research, tailor your message, and show genuine enthusiasm and passion for the project.

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Foreign Inward Remittance Advice (FIRA) is a must-have for freelancers working with international clients. While global opportunities open doors to diverse revenue streams, they also come with added compliance requirements. Every foreign payment you receive requires a FIRA from your bank—a crucial document that proves you’ve received international funds.

In this blog, we’ll break down everything you need to know about Foreign Inward Remittance Advice, why it matters for freelancers, and how to navigate this essential process with ease.

A Foreign Inward Remittance Advice (FIRA) is a document issued by Indian banks to Indian exporters and freelancers who receive foreign payments.

Before 2016, banks issued <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide">Foreign Inward Remittance Certificates (FIRC)</a> as proof of receiving global payments. However, in 2016, the RBI introduced the Export Data Processing Management System (EDPMS) to digitally record all export-related data.

With <a href="https://www.skydo.com/blog/understanding-edpms-full-form-and-its-essential-role-in-export-management">EDPMS </a>in place, the RBI instructed banks to stop issuing FIRCs for export collections. Banks now provide FIRA (Foreign Inward Remittance Advice) instead of FIRCs for export collections and foreign payments. Anyone receiving foreign payments, including freelancers, needs to obtain FIRA.

<a href="https://juspay.in/blog/payments/foreign-inward-remittance-certificate">Failure to obtain a FIRA</a> can lead to monetary loss as you will have to pay GST on the export income received in India. However, you may face penalties for non-compliance with foreign exchange regulations at the time of audits if <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">proper documentation</a>, such as FIRA, is not maintained.&nbsp;

Suppose you are looking for a loan from a financial institution. In that case, the institution asks for proof of income that serves as the reference point for the institution to either accept or reject the loan application. Here, you can submit FIRA as proof of income.&nbsp;

Furthermore, FIRA can also be used for VISA applications or anywhere as proof of income.&nbsp;<a href="https://www.linkedin.com/in/juhi-shah-633127154/?no_follow=true">Juhi Shah,</a> a seasoned Chartered Accounting professional states:

"FIRA plays a crucial role in establishing financial credibility and stability, particularly in cross-border transactions. These certificates serve as verifiable proof of income from international sources, bolstering confidence among lenders, investors, and immigration authorities."

By providing FIRA as supporting documentation, taxpayers demonstrate their commitment to compliance and reduce the risk of penalties or legal consequences for underreporting income.

Additionally, you can claim tax benefits or exemptions under the Double Taxation Avoidance Agreements (DTAA).

<a href="https://www.linkedin.com/in/ravi-mamodiya-5b635779/">Ravi Mamodiya</a>, a tax advisor highlighted the potential financial and legal implications of ignoring FIRAs:

"Ignoring FIRCs may result in inaccurate tax reporting, leading to penalties, fines, and potential legal actions by tax authorities. Additionally, non-compliance with tax laws erodes trust with regulatory agencies and may tarnish your reputation as a taxpayer. Hence, it is important to maintain FIRAs."

Receiving your international freelance payment directly through your bank can make obtaining FIRA a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRA. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRA, depending on the institution.

Getting a FIRA might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRA for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRA ready to download, complete with all the details you need.

Freelancers have fluctuating incomes and are solely responsible for fulfilling the taxation and regulatory compliance for <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">inward and outward remittance</a>. In case a freelancer has foreign clients and receives foreign remittances, it is vital to obtain FIRA either for the bank or the <a href="https://www.skydo.com/?https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">digital currency platform.&nbsp;</a>

FIRAs streamline income reporting to tax authorities, reducing complexities and minimising the risk of penalties for non-compliance. By documenting foreign remittances, freelancers can accurately report their earnings, fulfil their tax obligations, and build credibility with regulatory agencies.

Q1. Can all banks issue physical FIRCs?&nbsp;

Ans: RBI has discontinued the permission for banks to issue physical FIRCs/FIRAs after 2016 unless it is against Foreign Direct Investment or Foreign Institutional Investment. Currently, only AD Category-I banks are allowed to issue e-FIRAs (FIRAs in electronic format).&nbsp;

Q2. Do I need a separate FIRA for each client or project?

Ans: No, you do not need a separate FIRA for each client or project. All foreign remittances received during a particular time frame, regardless of the client or project, can be covered by a single FIRA issued by your bank.

Q3. What documents do I need to apply for FIRA, and how long does it take?

Ans: If you are requesting FIRA from a bank, <a href="https://cleartax.in/s/foreign-inward-remittance-certificate">you need to provide information</a> included in the FIRC certificate format, such as beneficiary name, name and address of the payee, UTR number, recipient’s name, purpose, date and amount of transfer, and the recipient’s account number. However, if you are receiving foreign remittances through digital platforms like <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo,</a> you don’t have to submit any documents. FIRA is generated automatically and instantly with every payment.&nbsp;

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Among various electronic <a href="https://www.skydo.com/blog/what-are-embedded-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">payment systems</a>, two prominent players in the United States are Fedwire and the Automated Clearing House (ACH) network. While both facilitate <a href="https://www.skydo.com/blog/ensure-rbi-guidelines-for-cross-border-transactions-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">electronic fund transfers</a>, understanding Fedwire vs ACH is crucial for deciding about which system best suits specific financial needs.

This blog will help you understand everything about ACH Vs Fedwire and help you choose the most suitable payment system.&nbsp;

Fedwire, also known as Federal Reserve Wire Network, is a payment system local to the United States, allowing entities to execute time-sensitive, large-value transactions. Fedwire is a well-known payment network for entities as it processes transactions in real-time (immediate fund transfers) with high transactional security.&nbsp;

<a href="https://www.frbservices.org/financial-services/wires#:~:text=The%20Fedwire%20Funds%20Service%20is,Federal%20Reserve%20Bank%20master%20accounts.">The US Federal Reserve</a> owns Fedwire and allows its participants to settle commercial payments for their accounts or on behalf of corporate or individual clients. Fedwire can also be used to settle positions with <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">banks and other financial institutions, </a>buy and sell federal funds, or submit federal taxes.&nbsp;

Fedwire is commonly used by financial institutions, businesses, and government agencies to settle USD on the same day of initiating the transactions. Financial institutions include US banks and some American branches of certain foreign banks or government groups maintaining an account with a Federal bank.&nbsp;

Automated Clearing House interbank payment system, or the ACH network, is an interconnected computer system that communicates with each other to help transfer or receive payments. The <a href="https://www.skydo.com/blog/everything-about-ach-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">ACH payment system</a> is native to the US and is used to complete transactions in USD among financial institutions with bank accounts in the US.&nbsp;

ACH payments do not restrict themselves to transferring person-to-person money, but individuals can use the ACH network to pay bills online, pay salaries to employees, pay mortgages and loans, and for tax refunds or payments.&nbsp;

ACH transfers involve three entities to execute the money transfer- the ACH operator, the ODFI, and the RDFI. The ACH operators can either be the Electronic Payments Network (EPN), run by a collective of 24 large banks, called The Clearing House, or FedACH, run by the Federal Reserve banks.&nbsp;

ACH is an open and inclusive system that allows various financial institutions to participate. This includes commercial banks, credit unions, savings banks, and other financial entities. As a result, ACH has become a standardised and universally accepted platform for electronic funds transfer.

Here is a detailed comparison between Fedwire and ACH transactions to help you choose the right method based on factors such as transaction amount, payment urgency, security, transfer frequency, and transaction limitations.

Fedwire and ACH are two prominent payment systems in the United States, each with its unique features and purposes. Fedwire excels in real-time settlement of high-value transactions, while ACH offers a versatile and cost-effective solution for various payment types, albeit with a longer processing time.

<a href="https://www.skydo.com/blog/choose-international-payment-gateway-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Choosing the appropriate payment method</a> is crucial, depending on the specific needs of the transaction. Fedwire's real-time settlement makes it a preferred choice for urgent and large-value transactions. On the other hand, ACH is ideal for recurring payments, payroll, and other non-time-sensitive transactions.

However, it is crucial for individuals and businesses to carefully consider the characteristics of each system and select the payment method that aligns with their specific requirements. Researching additional details or consulting with an expert can provide valuable insights and guidance on making informed financial and transactional decisions.&nbsp;

Q1. Is Fedwire different from wire transfer?

Ans: Fedwire is one of the most widely used wire transfer methods in the United States. However, it is not the same as wire transfer, as it is a broader term that refers to the electronic transfer of funds from one financial institution to another. Wire transfers can take various forms, and they are not limited to a specific system or network.

Q2. What is the difference between ACH, Fedwire, and SWIFT?

Ans: Although all of these are payment networks in the US, they differ in numerous factors such as transaction speed, transaction cost, processing times, etc. An example is that ACH takes 3-4 business days, <a href="https://www.skydo.com/blog/why-was-a-certain-amount-deducted-from-my-swift-payment?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">SWIFT</a> takes up to 5 business days, and Fedwire settles the transaction instantly.&nbsp;

Ans: Fedwire is an electronic payment system known as a Real-Time Gross Settlement (RTGS) system. In an RTGS system like Fedwire, transactions are settled immediately and individually.

Q4. Which is faster ACH or wire transfer?

Ans: Wire transfers are faster as they work on the Real-Time Gross Settlement (RTGS) system, settling transactions instantly. In comparison, ACH transfers (if not same-day ACH) take up to 3-4 business days to settle.&nbsp;

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Professional Tax is governed and levied by the respective state governments' professional tax acts. The amount you owe in taxes varies based on factors such as income, the nature of the profession, and the state in which the individual operates.

Here is everything you need to know about PT as a <a href="https://skydo.com/blog/freelancer-earning-potential-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelancer</a>.

If a person is salaried, the employers are responsible for deducting the professional tax amount directly from the salary. However, the government requires professionals such as <a href="https://www.skydo.com/blog/top-5-new-age-freelance-services-going-to-take-off-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelancers</a> to pay the P tax directly to their state government. Professional tax meaning is not based on income but rather on the nature of the profession or employment. It is meant to contribute to the state's revenue and development. The professional tax differs from other types of taxes mentioned below.&nbsp;

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Here is the basic structure of professional tax in India.

Calculate your Professional Tax Liability

<a href="https://vakilsearch.com/professional-tax-registration/how-professional-tax-calculated">Professional tax liability</a> depends on a freelancer's state of operations and earnings. However, irrespective of these two factors, the professional tax limit is Rs 2,500 for a month.

Here is the process of how to calculate professional tax on salary or earnings.

To minimise your professional tax burden as a <a href="https://www.skydo.com/blog/top-10-freelancing-truths?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">freelancer,</a> leverage deductions and exemptions available in your location. Here are some deductions and exemptions that freelancers can utilise:&nbsp;

You can use various accounting software or apps, such as <a href="https://khatabook.com/?utm_source=google&amp;utm_medium=search_ads&amp;utm_campaign=brand-gen_kw&amp;gad_source=1&amp;gclid=CjwKCAiA8sauBhB3EiwAruTRJhfwyGzRw85xwgamLcwna0oixY1MjScYAHjtZdAMqNRewwPZ1LRiqxoCVp8QAvD_BwE">Khatabook</a>, <a href="https://open.money/automated-accounting?utm_term=accounting%20automation&amp;utm_campaign=IYD_AP_Automation&amp;utm_source=google&amp;utm_medium=ppc&amp;hsa_acc=9660999868&amp;hsa_cam=20910601824&amp;hsa_grp=163502573492&amp;hsa_ad=689290766627&amp;hsa_src=g&amp;hsa_tgt=kwd-300068243667&amp;hsa_kw=accounting%20automation&amp;hsa_mt=p&amp;hsa_net=adwords&amp;hsa_ver=3&amp;gad_source=1&amp;gclid=CjwKCAiA8sauBhB3EiwAruTRJoBtiurqa_a2MAgb-mcQBj-Ab196-Oe822q4DWHxHHuVZ4XjCLSZORoC_0cQAvD_BwE">Open Money</a>, <a href="https://tallysolutions.com/download/#gref">TallyPrime</a>, etc., to keep track of your expenses. Furthermore, it is wise to regularly reconcile your financial records to ensure accuracy and identify potential deductible expenses.

Certain freelance professions or industries may be subject to specific taxes or regulations beyond professional tax and income tax. For example, online content creators, such as bloggers, YouTubers, and influencers, may need to comply with digital services taxes or regulations specific to online advertising revenue.

Hence, consulting a tax advisor or <a href="https://www.skydo.com/blog/top-online-communities-you-should-join-as-a-freelancer-in-2024?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">researching extensively</a> is important to know your compliance and taxation liabilities. You may also <a href="https://www.skydo.com/blog/how-to-file-gst-monthly-and-quarterly-for-freelancers?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">have to register for GST</a> if your annual income from freelancing is above Rs 20 lakh.

Proactively managing your professional tax obligations <a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">as a freelancer</a> can minimise tax burdens and avoid potential penalties or legal issues. Moreover, seeking professional advice from tax consultants or accountants can provide invaluable guidance tailored to your specific circumstances.

For further resources on freelancing, you can read <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo’s</a> <a href="https://www.skydo.com/blog?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">blogs</a> and open a free virtual currency account if you receive<a href="https://www.skydo.com/blog/how-do-you-receive-a-foreign-remittance-in-a-savings-account?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> foreign remittances.&nbsp;</a>

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<a href="https://www.skydo.com/blog/set-up-your-freelance-international-bank-account-in-just-5-minutes?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Banking operations</a> previously required visiting branches. Today, they are being heavily digitised, as users want to have access to banking services instantly through their mobile phones or laptops.

A new player has emerged on the financial scene – the Neobank. With their <a href="https://www.skydo.com/blog/the-impact-of-open-banking?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">innovative approach to banking</a> and emphasis on digital-first solutions, neobanks are revolutionising the banking sector.

Neobank meaning or neo banking meaning refers to fintech (financial companies backed by tech) that carry out operations similar to banks but are entirely digital and rarely have physical branches.&nbsp;

Neobanks invest heavily in creating a digital-first banking system to provide <a href="https://www.skydo.com/blog/checklist-to-get-the-right-bank-for-your-export-service-firm?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cutting-edge financial services</a> similar to any other traditional bank.&nbsp;

Neobanks are not directly governed and regulated by the RBI but have various banking partners such as HDFC, ICICI, and Axis Bank to assist them in providing financial services through their banking infrastructure and channels.&nbsp;

Neobanks offer banking services such as savings accounts, checking accounts, payment processing, money transfers, and sometimes lending services entirely online.&nbsp;

Neobanks leverage technology extensively to provide a seamless and convenient banking experience. They often incorporate advanced features such as instant money transfers, automated budgeting tools, personalised financial insights, and round-the-clock customer support through chatbots or online messaging.

Here is how you can open a Neobank account online.

There are more <a href="https://www.startuphrtoolkit.com/neobanks-in-india/">than 20 neobanks in India</a>. Thus, comparing them on their cost structure and services is important.&nbsp;

Download the mobile app of the neobank or visit their website to start the account registration process. You will have to provide personal details such as name, date of birth, address, email, phone number, and identification proofs such as PAN or Aadhar. Then, choose the type of account you want to open.&nbsp;

Once you have submitted the account opening application, the neobank verifies the provided information. After successful verification, they set up the account.&nbsp;

Step 4: Confirmation and Activation&nbsp;

Once all steps are completed, you will receive confirmation that your account has been successfully opened. You may need to activate your account by following the instructions provided by the neobank, such as verifying your email or phone number.

Some common features offered by the best neobanks in India include the following.

For a better understanding of neo-banking meaning, here are the pros and cons of neobanks.

India has numerous neobanks that offer their services with unique banking features. Here are the top <a href="https://www.startuphrtoolkit.com/neobanks-in-india/">10 popular neobanks examples in India</a>.

Neo banking services offer a compelling alternative to traditional banking, with a host of potential benefits and considerations for users to weigh. On one hand, the convenience, accessibility, and transparency of neobanks make <a href="https://www.skydo.com/blog/get-real-time-insights-for-analyzing-freelance-financial-goals?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">managing finances </a>easier and more efficient than ever before.

However, it's essential for users to also consider the limitations of neobanks, such as the lack of physical branches, the relative newness of some players, and concerns about data privacy. By weighing these factors carefully and understanding their individual banking needs and preferences, users can decide whether neobanks are the right fit for them.