Fino Payments Bank gets RBI's go-ahead to become a small finance bank
Fino Payments Bank just got the RBI's in-principle nod to turn into a small finance bank, making it the first payments bank in India to reach this stage.
The approval, granted in early December 2025, comes under new guidelines for banks with at least five years' experience and ₹300 crore net worth.
What does this mean for Fino and its users?
Once it clears some final steps—like updating its capital structure and governance—Fino can start offering bigger deposits and loans to individuals and small businesses.
A key part of the deal: at least 25% of its branches will need to be in unbanked rural areas.
How is Fino different?
Fino runs on tech, serving over 1.6 crore customers through 20 lakh merchants and has more than ₹3,000 crore in deposits.
With plans to spin off its business correspondent arm and launch lending through merchants soon, Fino aims to boost profits by building on its strong payment relationships.
Why does this matter?
Joining the league of small finance banks like AU SFB and Ujjivan SFB means Fino can offer a wider range of financial services—and help bring banking access to more people across India.
It's a big step toward financial inclusion.