Following board approval, Fino Payments Bank requests an SFB licence from the RBI.

The Reserve Bank of India has received an application for a small finance bank (SFB) license from Fino Payments Bank, a division of Fino Paytech Limited (RBI). The RBI announced in a statement on Monday, January 8, that Fino Payments Bank had submitted an application in accordance with the SFBs' "Guidelines for on-tap licensing."The bank's board gave its approval in July 2023 to the application for an SFB license and instructed the creation of a committee to move forward with the evaluation of a reverse merger with Fino Paytech Limited, the bank's parent company. "Our SFB will be a Payments Bank++ model, different from existing players," stated Chief Financial Officer Ketan Merchant at the time.

"In the first few years of operation, fee-based income will constitute 75% – 80% of the revenue."Fino's net worth is estimated to be over INR 600 Cr, but small financing banks currently need INR 200 Cr to meet their minimal capital requirements. On June 30, 2017, Fino Payments Bank commenced its business activities. Among its notable investors are Bharat Petroleum, ICICI Group, Blackstone, IFC, Intel, and LIC.