New Delhi, Dec 6 (KNN) The Reserve Bank of India (RBI) has granted ‘in-principle’ approval to Fino Payments Bank for its conversion into a Small Finance Bank (SFB).
As per RBI guidelines, existing Payments Banks which have completed five years of operations are eligible for conversion into SFBs.
The central bank said Fino Payments Bank’s application was assessed as per the procedure laid down in the guidelines.
The RBI approval to Fino Payments Bank marks the first instance of a Payments Bank in India getting an opportunity to convert into an SFB.
“It is an affirmation of the strength and scalability of Fino’s lean operating model, consistent performance and high standards of governance,” the payment bank said.
Terming the conversion to SFB as a natural progression, Rishi Gupta, MD & CEO, Fino Payments Bank said that the approval is a testament to the fintech company’s consistent performance, ability to take technology-led banking to the masses, promote digital payments and adherence to compliance and regulatory guidelines.
Transition from payment bank to small finance bank would allow Fino to realise its growth potential by expanding product suite, engage with a wider customer segment and enter into lending business.
Fino Payments Bank said that it will continue to leverage its asset-light, distribution-led network while investing in technology, data and partnerships to build scale efficiently.
“For customers, this conversion will translate into more choice, greater convenience and a wider range of solutions delivered through Fino’s trusted phygital model,” it said.
Ketan Merchant, Chief Financial Officer, Fino Payments Bank said that the firm’s model allows it to mobilise liabilities at low cost and enable it to build a differentiated Small Finance Bank.
As of September 30, 2025, Fino Payments Bank had a deposit base of over Rs 2,300 crores with cost of funds as low as 1.9%.
(KNN Bureau)
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