Fino Payments Bank likely to apply for small finance bank licence, says MD- 23.09.2019

Will seriously explore possibility; have to discuss the issue with investors’

Fino Payments Bank, which started operations about two years ago, is likely to apply to the Reserve Bank of India (RBI) to convert itself into a small finance bank after the banking regulator allowed such conversion last week.

While announcing the draft norms for on-tap licensing for small finance banks on September 13, RBI allowed the conversion of a payments bank to a small finance bank.

Eligible for conversion

The payments bank will be eligible for conversion as it is not backed by any industry house. RBI has barred corporate groups, which earn more than 40% income from non-financial activities, from applying for SFB license.

In an interaction with The Hindu, Rishi Gupta, MD, and CEO of Fino Payments Bank said, “We will seriously explore the possibility [of converting into SFB]. We are studying the norms. We have to discuss the issue with the investors.”

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Source: The Hindu.