Fino Payments Bank applies for small finance bank license from RBI

Fino Payments Bank walked the talk and has applied for a small finance bank license. The bank has been preparing itself for an upgrade in terms of banking activity for quite some time.

Fino management had earlier told ET that it would apply for the license by the end of 2023.

RBI allows payments banks without corporate lineage to apply for a small finance bank license after completing five years of business.

The business opportunity for payments banks is limited in the sense that while they accept deposits from low-income households and migrant labourers and offer payment services to them, they are not allowed to lend. Small finance banks, on the other hand, are allowed to operate both in the asset and liability sides of the business.

Fino has around Rs 600 crore of net worth while the minimum capital requirement for small finance banks is Rs 200 crore at present.