Among the various financial inclusion initiatives introduced by the government and the RBI over the years, Payment banks (PBs) were introduced by the RBI in 2014 to further the motive of financial inclusion in the unbanked areas across the country targeting the poor households, small businesses and migrant workers. The study is of descriptive nature and is analyzed using tables and charts. The paper discusses the importance of PBs in financial inclusion by comparing with the commercial banks and PPIs, and highlighted their contributions in financial inclusion. The paper also analyzed the achievements of PBs in the cashless revolution by comparing with other entities providing the same type of services.