RBI Gives In-Principle Nod to Fino Payments Bank to Convert into Small Finance Bank
RBI grants in-principle approval to Fino Payments Bank Limited for its conversion into a Small Finance Bank under on-tap SFB licensing guidelines.
New Delhi: The Reserve Bank of India (RBI) on December 5, 2025, granted ‘in-principle’ approval to Fino Payments Bank Limited (FPBL) for its conversion into a Small Finance Bank (SFB). The central bank confirmed the development through an official press release issued from its Central Office in Mumbai.
According to the RBI, the approval has been provided under the “on tap” licensing guidelines for Small Finance Banks in the private sector. The guidelines permit existing Payments Banks, controlled by residents and having completed at least five years of operations, to apply for conversion into SFBs. Fino Payments Bank fulfilled these eligibility conditions, and its application was assessed as per the prescribed procedure.
The move marks a significant milestone for Fino Payments Bank, which has been operating in India’s digital and financial inclusion space. The conversion into an SFB will enable the bank to expand its financial services portfolio, undertake lending activities on a wider scale, and strengthen its role in serving underbanked and unbanked segments.
The press release, issued by Chief General Manager Brij Raj, highlights that the approval is only the first stage and that FPBL will need to meet all regulatory requirements and obtain the final license before commencing operations as a Small Finance Bank.
The RBI’s decision aligns with its broader objective of enhancing financial access and fostering a more inclusive banking ecosystem across the country.