Fino Payments Bank Takes a Leap: Seeks Small Finance Bank License from RBI

Charting New Horizons: Fino Payments Bank’s Quest for Small Finance Bank Status


In a significant move, Fino Payments Bank, a subsidiary of Fino Paytech Limited, has embarked on a new journey by applying for a Small Finance Bank (SFB) license from the Reserve Bank of India (RBI). This strategic decision comes after the board’s unanimous approval in July 2023 and reflects Fino’s commitment to further expand its financial services offerings.

Background: Fino Payments Bank, which boasts a net worth of approximately INR 600 Cr, has chosen to pursue an SFB license despite already being a prominent player in the banking sector. This decision aligns with the bank’s aspirations for growth and underscores its confidence in meeting the regulatory requirements.

Financial Standing: One noteworthy aspect of Fino’s application is its robust financial standing. The bank turned profitable in the fourth quarter of 2019-20 and has consistently maintained profitability in subsequent quarterly periods. Such financial stability positions Fino Payments Bank as a strong contender for the coveted SFB license.

Capital Requirements: To become a Small Finance Bank, the minimum capital requirement is INR 200 Cr. Fino Payments Bank’s net worth of INR 600 Cr not only demonstrates its financial strength but also positions it comfortably above the stipulated capital threshold. This financial cushion could play a pivotal role in supporting Fino’s expansion plans and ensuring sustained growth as it ventures into the realm of small finance banking.

RBI’s Response: In response to Fino’s application, the Reserve Bank of India released a statement on Monday (January 8), confirming the receipt of the application under the “Guidelines for on-tap licensing” of Small Finance Banks. The central bank’s acknowledgment underscores the significance of Fino’s strategic move and sets the stage for further developments in the financial landscape.


Fino Payments Bank’s decision to seek a Small Finance Bank license marks a pivotal moment in its journey. With a strong financial foundation, a profitable track record, and a commitment to providing innovative financial solutions, Fino is poised to make a significant impact in the small finance banking sector. As the RBI assesses the application, industry observers eagerly await the outcome, anticipating the potential transformation and growth that Fino Payments Bank could bring to the financial services landscape.

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