Fino Payments Bank applies to become Small Finance Bank

MUMBAI – The Reserve Bank of India (RBI) has recently confirmed that it has received an application from Fino Payments Bank to transition into a Small Finance Bank (SFB), a move that aligns with RBI’s “on tap” Licensing Guidelines issued on December 05, 2019.

Fino Payments Bank, having met the revised minimum capital necessity of Rs 200 crore (1Rs=$0.012), is poised to enhance its banking infrastructure. CEO Rishi Gupta highlighted the bank’s readiness, stating that the capital threshold has been achieved. The financial results for the quarter ending September FY24 underscore the bank’s robust financial health, showcasing a net profit surge of 41.5% to Rs 19.5 crore and an 18.2% increase in revenues, reaching Rs 358.6 crore.

The RBI’s initiative to permit payment banks like Fino Payments Bank to upgrade to SFBs after five years of operations is part of a broader strategy. This plan is designed to fortify the banking sector’s foundation and improve the availability of financial services, especially catering to the needs of small businesses and farmers, who often lack sufficient access to traditional banking services.

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