Fino Finance bank aims to turn into a Small Finance Bank

08 Dec

The Reserve Bank had issued the Guidelines for Licensing of “Small Finance Banks” in the Private Sector on November 27, 2014.
The process of licensing culminated in granting in-principle approval to ten applicants and they have since established the banks.
It was notified in these Guidelines that after gaining experience in dealing with these banks, the Reserve Bank will consider ‘on tap’ licensing of these banks.
After a review of the performance of the existing small finance banks and to encourage competition, it was announced in the Second Bi-monthly Monetary Policy Statement, 2019-20 dated June 06, 2019 that the Reserve Bank would put out draft guidelines for ‘on tap’ licensing of such banks.
Accordingly, the following guidelines for licensing of small finance banks in the private sector have been formulated for continuous authorisation.
Fino Payments Bank which is also a Payments Bank is now aiming to turn into an SFB and says that it will not depend only on Loans for generating income.