Fino likely to convert into small finance bank


Fino Payments Bank is most likely to convert itself into a small finance bank just like other players in the domain namely India Post and Paytm.


This will allow the lender to access cheaper funds from the Reserve Bank of India (RBI) and disburse credit to customers.

As per the central bank’s rules pertaining to icences for SFBs, payments banks can apply for their conversion into SFBs after five years of completion of its operations. Fino will be eligible for this  conversion in 2021.

“SFB is the next logical step for us. We intend to explore all available options, but there is still time to work out the details as per the final RBI guidelines,” said Rishi Gupta, CEO, Fino Payments Bank.

“We plan to apply for conversion into a SFB after we turn a profitable payments bank to show that even that model works.”

As per the RBI’s new rules, SFBs are mandated to be deemed scheduled commercial banks immediately post commencing operations. The scheduled status would allow these lenders to go for debts or loans at the bank rate from the central bank.


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