Fino Payments Bank SFB Conversion: RBI Nod Likely by March 2026
Why in the news
Sources said RBI is set to clear Fino Payments Bank’s request to turn into a Small Finance Bank (SFB) by March 2026. Earlier, on 7 August 2025, RBI had cleared AU SFB to become a Universal Bank.
Key facts
- Fino Payments Bank is a scheduled commercial bank seeking SFB status.
- Expected approval: March 2026.
SFB vs scheduled commercial bank
| Point | SFB | Commercial bank |
|---|---|---|
| Role | Financial inclusion of underserved groups | Universal banking, Second Schedule of RBI Act, 1934 |
| PSL | 75% of ANBC | 40% of ANBC |
| Branches | 25% in unbanked rural centres | No rural mandate |
| Capital | ₹200 crore minimum | Higher, varies by type |
| Examples | AU, Equitas, Ujjivan, Jana | SBI, HDFC Bank, ICICI Bank, RRBs |
SFB eligibility
- Promoters: professionals with 10+ years in banking or finance, NBFCs, MFIs, Local Area Banks; residents only.
- Foreign shareholding as per private-bank FDI policy, up to 74%.
- Promoter stake: 40% locked for 5 years, cut to 26% within 12 years.
- Promoters must satisfy RBI’s fit and proper norms.
Exam angle
- PSL: 75% (SFB) vs 40% (commercial bank).
- Rural branch rule: 25%.