Fino Payments Bank's Strategic Leap to Small Finance Bank Status

The Reserve Bank granted 'in-principle' approval for Fino Payments Bank Ltd to convert into a Small Finance Bank. Established in 2017, Fino has played a critical role in financial inclusion and became the first profitable and publicly listed payments bank. It applied for an SFB license in 2023.

The Reserve Bank of India (RBI) has given 'in-principle' approval for Fino Payments Bank Ltd to transition into a Small Finance Bank (SFB), a critical development in its operational journey since its inception in 2017.

As per the RBI's guidelines for 'on tap' licensing of Small Finance Banks, existing payment banks that are resident-controlled and have completed at least five years of operation are eligible for the transition. Fino Payments Bank filed its application between October and December 2023, marking a significant step towards expanding its financial service offerings.

Fino has a storied history, beginning in 2006 as a payments tech company. It has been instrumental in India's financial inclusion agenda, notably facilitating government direct benefit transfers (DBT). With achievements like becoming the first profitable payments bank in 2020 and the first to go public in 2021, Fino is set to lead as a small finance entity.

(With inputs from agencies.)