All 14,000 HPCL fuel stations will act as banking points for Airtel Payments Bank, the company said in a statement.

The bank has about 10 million users who will be able to customers would be able to access a range of convenient banking services such as opening new accounts, make cash deposits, withdrawals facility and transfer money.

This will add to the depth and reach of Airtel bank's retail based network that leverages over 300,000 Airtel retail outlets as banking points.

The customers will also be able to make digital payments for fuel purchases across 14,000 HPCL stations by using their mobile phones.

The cashless payments can be made via smartphones (MyAirtel App) as well as feature phones (USSD), the company said. The customer is not charged any transaction fee for these digital payments.

"We are delighted to partner HPCL as part of our endeavour to build a robust and diverse merchant ecosystem that brings more digital payments avenues to our customers. We are, in particular, pleased to have these fuel outlets as our banking points," Shashi Arora, managing director and chief executive officer, Airtel Payments Bank, said.

This partnership will add to the growth of digital payments in the country and contribute to the government's Digital India vision, he said.

"Customer visiting our outlets will now be able to pay seamlessly for fuel purchases and will also be able to enjoy the added convenience of banking with Airtel Payments Bank," G S V Prasad, executive director – retail, HPCL, said.

Airtel Payments Bank was launched in January this year. It offers an interest rate of 7.25% per annum on deposits in savings accounts and free personal accidental insurance of Rs one lakh apart from other benefits. Payments bank is a differentiated bank which allows customers to open a savings account for a deposit amount of up to Rs 1 lakh.

Apart from Airtel, Paytm and India Post have started their payments banks this year.