Fino Payments Bank gets RBI's in-principle approval for small finance bank
06 Dec 2025, 11:07 AMAs a small finance bank, Fino will be able to finally lend to its customers from its own book.
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The Reserve Bank of India has given preliminary approval for Fino Payments Bank Limited to transform into a Small Finance Bank. Fino becomes first payments bank in the country to transition into a SFB.
The central bank's decision follows its established framework for licensing small finance banks in the private sector. As a small finance bank, Fino will be able to finally lend to its customers from its own book -- which as a payments bank it wasn't allowed to do.
The RBI has issued guidelines for 'on tap' licensing of SFBs in the private sector, under which, existing payment banks which are controlled by residents and have completed five years of operations are eligible for conversion into small finance banks.
Fino Payments Bank, which started operations in 2017, had applied for a small finance bank license in 2023. In July 2023, the company's board had approved the proposal to transition into an SFB.
The Mumbai-based firm was founded in 2006 as a payments technology company. Fino became first profitable payments bank in 2020. It was listed on bourses in 2021.
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