Mumbai: The Reserve Bank on Friday granted 'in-principle' approval to Fino Payments Bank Ltd (FPBL) for conversion into a Small Finance Bank (SFB).Fino Payments Bank, which started operations in 2017, had applied for a small finance bank license in October-December 2023.
RBI has issued the Guidelines for 'on tap' licensing of SFBs in the private sector, the central bank said in a statement As per the guidelines, existing payment banks which are controlled by residents and have completed five years of operations are eligible for conversion into SFBs, it said.
The application of FPBL was assessed as per the procedure laid down in the guidelines, it added.It was in 2006 that Fino started off as a payments technology company and gradually played a crucial role in the financial inclusion journey of India, delivering services under the government's direct benefit transfer (DBT) services to the beneficiaries.Fino also distinguishes itself by becoming the first profitable payments bank in 2020 and the first in the space to be listed on bourses in 2021.
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