New Delhi, Dec. 6 -- The Reserve Bank of India (RBI) has granted 'in-principle' approval to Fino Payments Bank for its conversion into a Small Finance Bank (SFB).

As per RBI guidelines, existing Payments Banks which have completed five years of operations are eligible for conversion into SFBs.

The central bank said Fino Payments Bank's application was assessed as per the procedure laid down in the guidelines.

The RBI approval to Fino Payments Bank marks the first instance of a Payments Bank in India getting an opportunity to convert into an SFB.

"It is an affirmation of the strength and scalability of Fino's lean operating model, consistent performance and high standards of governance," the payment bank said.

Terming the conversion t...