Fino Payments Bank Shares Slip 9% Despite RBI Nod for SFB Transition

• Fino Payments Bank shares fell 9% despite receiving in-principle RBI approval to transition into a Small Finance Bank (SFB).
• The approval positions Fino to become the first payments bank in India to convert into a full-fledged SFB.
• As an SFB, Fino will gain the ability to lend, accept unrestricted deposits, and operate as a full-service bank.
• New regulatory requirements for Fino as an SFB include 25% rural outlets, a ₹300 crore net worth target, 15% capital adequacy, and specific promoter equity retention rules.
• Fino will also be subject to CRR, SLR, and priority sector lending rules, including 60% of credit to priority sectors and half of its loan book for loans up to ₹25 lakh.

Why It Matters: Fino's SFB conversion expands its services and sets a precedent for other payments banks.