In the Indian banking system, which of the following became the first operational payments bank to start services in India?

Introduction / Context:
Payments banks are a special category of banks introduced in India to further financial inclusion by providing small savings accounts, remittance services, and digital payment facilities. They have restrictions on lending but can accept deposits up to a specified limit and offer various payment services. The Reserve Bank of India granted licences to several entities, and one of them became the first operational payments bank in the country. This question asks which payments bank started services first.

Given Data / Assumptions:

• The Reserve Bank of India granted in principle licences to multiple applicants to set up payments banks.
• These included telecom companies, technology firms, and financial institutions.
• The question is concerned with which payments bank actually launched operations first, not which licence was granted first.
• Early payments banks included Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, Paytm Payments Bank, and Aditya Birla Payments Bank.
• We rely on standard general knowledge and exam oriented information about the sequence of operational launches.

Concept / Approach:
According to general knowledge sources used in competitive examinations, Airtel Payments Bank, promoted by Bharti Airtel, was the first payments bank to begin operations in India. It initially launched a pilot in one state and then extended services to more regions, ahead of other licenced payments banks. As a result, it is widely recognised as the first operational payments bank in the country.

Step-by-Step Solution:
Step 1: Recall the list of entities that received licences for payments banks from the Reserve Bank of India.Step 2: Identify which of these banks actually began operations and launched their services to the public.Step 3: Examine the sequence of launches and note that Airtel Payments Bank started its pilot operations before other payments banks.Step 4: Recognise that exam preparation materials and banking awareness notes consistently mention Airtel Payments Bank as the first operational payments bank.Step 5: Compare this with the options provided and locate Airtel Payments Bank in option b.Step 6: Conclude that Airtel Payments Bank is the correct answer.

Verification / Alternative check:
Banking awareness textbooks and exam guides often include a question about the first payments bank in India and provide Airtel Payments Bank as the answer. They may mention the date of launch and the fact that it began as a pilot in one state before expanding to other regions. Other payments banks such as India Post, Fino, Paytm, and Aditya Birla started operations later. This consistent coverage supports the selection of Airtel Payments Bank as the first operational payments bank in India.

Why Other Options Are Wrong:
Fino Payments Bank commenced operations after Airtel Payments Bank, so option a is not correct. Aditya Birla Payments Bank also began operations later and eventually ceased functioning, so option c is incorrect. Paytm Payments Bank, option d, launched after Airtel Payments Bank and is not recognised as the first. India Post Payments Bank, option e, also started full operations after Airtel and is therefore not the correct answer to this specific question.

Common Pitfalls:
Because several payments banks launched around similar periods, candidates sometimes confuse which one was first. Another misunderstanding is to assume that the most widely known or largest brand, such as Paytm, must have been first. To avoid such errors, it is useful to memorise the standard banking awareness fact that Airtel Payments Bank was the first payments bank to commence operations in India.

Final Answer:
Airtel Payments Bank was the first operational payments bank to start services in India.