The ‘In-principle’ approval also marks the first instance of a Payments Bank in India getting an opportunity to convert into an SFB.
FinTech BizNews Service
Mumbai, December 05, 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:
|
Conversion plan and regulatory road map
Fino will now work closely towards:
The Bank will continue to operate as a Payments Bank until final approval is granted and SFB operations commence.
