Fino Payments Bank gets RBI nod for small finance bank conversion

Fino Payments Bank announced on December 5, 2025, that it has received 'in-principle' approval from the Reserve Bank of India (RBI) for its conversion from a payments bank to a small finance bank (SFB). This makes Fino the first payments bank in India to achieve this conversion, highlighting its robust operating model and consistent performance. The transition aligns with the bank's long-term vision to become a trusted, digital-led bank.

The conversion will allow Fino to expand its product offerings, engage with a wider customer segment, venture into lending, and build a stronger liability franchise, thereby creating significant value for stakeholders. The bank intends to leverage its asset-light, distribution-led network while investing in technology and partnerships to scale efficiently. As of September 30, 2025, Fino served 16 million customers through over 2 million merchants across 97% of India's pin codes, with a deposit base exceeding Rs 2,300 crores.

Fino will continue to operate as a payments bank until final approval is granted and SFB operations officially commence, working to meet all stipulated conditions and aligning its capital, governance, and structural requirements for SFB operations. The bank aims to prepare a comprehensive migration blueprint to ensure seamless continuity of existing services during the conversion period.