Fino Payments Bank has received the In-principle approval from the Reserve Bank of India (RBI) to convert into a Small Finance Bank (SFB).
Fino will now work towards meeting all conditions stipulated under the ‘In-principle’ approval, aligning capital, governance and structural requirements for SFB operations and prepare a comprehensive migration blueprint ensuring seamless continuity of all existing services during the conversion period.
The Bank will continue to operate as a Payments Bank until final approval is granted and SFB operations commence.
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.”
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.”
Fino Payments Bank, a subsidiary of Fino Paytech, started its operations in June 2017 after receiving the final license from the RBI. It is a technology-led, asset-light digital bank serving emerging India and operates a high-volume, low-cost model focused on financial inclusion.
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.
Fino Paytech, the holding company of the Bank, is backed by marquee investors including ICICI Group, BPCL, Blackstone, LIC, and IFC.
