Current Affairs - Banking - Discussion

Fino Payments Bank achieved a major milestone by becoming the first payments bank in India to secure the Reserve Bank of India’s in-principle approval to transition into a Small Finance Bank. This approval allows it to overcome the limitations of the payments bank model, such as the inability to lend or accept deposits above ₹2 lakh. By moving toward SFB status, Fino can expand its services, enter the lending market, and serve a broader range of customers, especially in underserved and rural regions. The shift is expected to enhance financial inclusion while strengthening Fino’s long-term growth, competitiveness, and operational capabilities.