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Airtel Payments Bank Limited (APBL) holds the historic distinction of being the first company to receive a Payments Bank license from the Reserve Bank of India (RBI) on April 11, 2016, a new banking model designed to further financial inclusion. It began as an 80:20 partnership between the telecom giant Bharti Airtel and Kotak Mahindra Bank, with the pilot project launching in Rajasthan in November 2016, followed by a national launch in January 2017 to promote the government's push for a cashless economy. Following the sale of Kotak Mahindra's stake, the bank is now almost entirely a subsidiary of Bharti Airtel, with 99.9% equity capital owned by the Bharti Group of Companies as of late 2021. APBL is currently classified as an unlisted public limited company, operating as a subsidiary, and was granted the status of a scheduled bank by the RBI in January 2022.

The bank’s significance lies in its pioneering role in the Indian financial system as the country’s first operational Payments Bank, leveraging the extensive retail and digital network of its parent company, Bharti Airtel, to reach underserved and unbanked populations. Payments Banks, as differentiated banks, are restricted from undertaking lending and issuing credit cards, but they can accept deposits (currently limited to ₹200,000 per customer) and issue debit/ATM cards. APBL utilizes over 500,000 neighborhood banking points and its digital platform to serve a large user base with services like digital payments, insurance, and FASTag. Alongside one other major competitor, APBL commanded over 88% of the total deposits in the payments bank sector in 2018, underscoring its early dominance and critical function in driving India's mass adoption of digital financial services.