Fino Payments Bank Limited has received the RBI approval for commencing referral services of Fixed Deposit (FD) and Recurring Deposit (RD) on behalf of a partner bank. In its letter dated 19th April, the RBI stated that Fino Bank can carry out referral services of term deposit products in the form of FD and RD as a Business Correspondent of Suryoday Small Finance Bank (SSFB).
The association is the second between Fino Bank and SSFB and the first one as listed entities. Earlier, Fino partnered with SSFB to offer sweep account facility to its customers to address the Rs 1 lakh end of the day deposit limit, which was later revised to Rs 2 lakh.
The FD and RD referral services will be offered to Fino Bank’s over 3.9 million customers who are aspirational and need access to these products to ensure their financial needs are met. The service is expected to go live in Q2 FY23.
According to RBI report released on 25 February 2022, the total term deposits in India at the end of 9 months FY22 stood at over Rs 26.57 trillion. In FY21, term deposits were more than Rs 33.63 trillion with the first nine months accounting for close to Rs 25 trillion.
Major Ashish Ahuja, the Chief Operating Officer, Fino Payments Bank said, “Fino’s objective is to be a one stop shop for all banking related products and services. Continuous product innovation, either own or through partnerships, is one of the core pillars of our model. Term deposits are great financial planning and security instruments. We believe the addition of fixed and recurring deposits to our existing range of offerings will further enhance customer engagement and experience. We are pleased to partner with Suryoday SFB to offer these products and further strengthen our already existing association.”
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Narayan Rao, Chief Services Officer, Suryoday Small Finance Bank said, “Extending the reach of our products through innovative distribution channels is critical for us. We are excited to partner and offer our term deposit services to Fino Payments Bank’s customers. We look forward to a mutually beneficial association.”
In addition to FD and RD with Suryoday SFB, Fino Bank will soon commence international remittance services with a partner having received RBI approval for the same in January 2022. Fino already cross sells offerings such as business loans, life and general insurance and gold loan referrals.
