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Fino Payments Bank Gets Green Light to Become Small Finance Bank
5 Dec, 2025
Summary
- RBI granted in-principle approval for Fino Payments Bank to become an SFB.
- This is the first payments bank to successfully transition to a small finance bank.
- Fino plans to launch new lending products post-transition, including small loans.
The Reserve Bank of India announced on December 5, 2025, that it has given 'in-principle' approval for Fino Payments Bank Ltd. to convert into a Small Finance Bank (SFB). This decision is a landmark achievement, as it is the first instance of a payments bank undertaking such a transformation.
The transition will enable Fino Payments Bank to expand its service offerings beyond its current model. The bank, which commenced operations in 2017, had submitted its application for the SFB license between October and December 2023. This move aligns with the central bank's 'on tap' licensing guidelines.
With the RBI's nod, Fino Payments Bank is set to introduce new lending products. These will include individual loans of less than Rs 50,000 and secured lending options for micro, small, and medium enterprises, signaling a significant expansion in its financial services.
