Mumbai, December 08, 2025: Fino Payments Bank Limited (“Fino” or “the Bank”) today announced that it has received the Reserve Bank of India’s (“RBI”) ‘In-principle’ approval to convert into a Small Finance Bank (“SFB”) — marking a significant step in the Bank’s long-term vision to become India’s most trusted, digital-led bank.
The ‘In-principle’ approval also 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.
Terming the conversion to SFB as a natural progression, Rishi Gupta, MD & CEO, Fino Payments Bank, said, “The ‘In-principle’ approval is a historic and momentous occasion in Fino’s evolution journey. We are deeply grateful to the regulator (RBI) for reposing faith in Fino’s asset light business model and its robust governance structure. The approval is a testament to our consistent performance, ability to take technology-led banking to the masses, promote digital payments and adherence to compliance and regulatory guidelines.
It provides Fino, an opportunity to realise its growth potential by expanding product suite, engaging with a wider customer segment, foray into lending and building a strong liability franchise thereby creating significant value for all stakeholders.
I take this opportunity to thank our investors, customers, employees and partners for their continuous support and patronage, and express my gratitude to our Board Members for their guidance.”
The Bank 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.
Ketan Merchant, Chief Financial Officer, Fino Payments Bank said, “We are honoured by the RBI’s ‘In-principle’ approval and deeply grateful for the continued trust reposed on Fino. Our model allows us to mobilise liabilities at low cost, this would enable us to build a differentiated Small Finance Bank focusing on secured assets and enhance our ROE through asset light model.”
As of September 30, 2025, Fino served 16 million customers through 2 million+ merchants covering 97% of India’s pin codes, giving it one of the widest and most trusted last-mile networks in the country. During the mentioned period, the Bank also had a deposit base of over Rs 2,300 crores with cost of funds as low as 1.9%, a significant metric and potential differentiator in the long run.
| Milestones of Fino Payments Bank over the years:
ü Only financial inclusion practitioner to receive Payments Bank license in 2017 ü First private and standalone Payments Bank to get categorized as Scheduled Commercial Bank ü First Payments Bank to become profitable (FY21) ü First tax paying Payments Bank in the country ü First Payments Bank to record five consecutive years of profitability (FY21-FY25) ü First & the only Payments Bank in India till date to get listed on the Stock Exchanges |
Conversion plan and regulatory road map
Fino will now work closely towards:
- Meeting all conditions stipulated under the ‘In-principle’ approval
- Aligning capital, governance and structural requirements for SFB operations
- Preparing a comprehensive migration blueprint ensuring seamless continuityof all existing services during the conversion period
The Bank will continue to operate as a Payments Bank until final approval is granted and SFB operations commence.
About Fino Payments Bank
Fino Payments Bank Limited (a subsidiary of Fino Paytech Ltd.*) started its operations in June 2017 after receiving final license from RBI. It is a technology-led, asset-light digital bank serving emerging India and operates a high-volume, low-cost model focused on financial inclusion. The Bank processed ₹1.1 lakh crore in transactions in Q2 FY26, a 7% YoY increase, with 55% digital throughput.
The Bank is India’s only listed payments bank and the first to record profits. It is also the only payments bank to achieve five consecutive years of profitability.
Having demonstrated successful running of payments bank operations, Fino applied for Small Finance Bank license during the quarter ended December 31, 2023 under the Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector dated December 05, 2019.
*Fino Paytech Ltd, the holding company of the Bank, is backed by marquee investors including ICICI Group, BPCL, Blackstone, LIC, and IFC.
For more information, visit: www.fino.bank.in
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