Fino Payments Bank Gets In-Principle Approval to Become Small Finance Bank

India’s Fino Payments Bank has received “in-principle” approval from the Reserve Bank of India (RBI) to transition into a small finance bank, the central bank announced on Friday. The move marks a major milestone for the bank, currently operating under the restricted framework of a payments bank.

With the upgrade, Fino Payments Bank will be able to accept larger deposits, extend loans, and offer credit facilities to individuals and small businesses—capabilities it currently lacks. The transition is expected to significantly widen its customer base and service offerings. As per RBI regulations, payments banks controlled by Indian residents and with a minimum of five years of operations are eligible to apply for such a conversion.

Fino, which began as a fintech venture before becoming a payments bank in 2017, has built a customer base of 16 million as of the end of September. The RBI said the bank’s application was processed in accordance with established guidelines. The approval opens the door for Fino to evolve into a more comprehensive banking institution once final regulatory conditions are met.

Pic Courtesy: google/ images are subject to copyright