Private lender Fino Payments Bank has received a green signal from the Reserve Bank of India, or RBI, to commence the referral services of Fixed Deposit (FD) and Recurring Deposit (RD) on behalf of a partner bank, it said in a statement. In its letter dated April 19, the RBI stated that Fino Bank can carry out referral services of term deposit products in the form of FD and RD as a Business Correspondent of Suryoday Small Finance Bank (SSFB).
Following the RBI nod, Fino Payments Bank shares on Thursday, April 21, soared 4.2 per cent in early trade. The shares of the bank jumped to Rs 318.35 as against Rs 305.40 during the previous close at the BSE. The bank has been reporting healthy incomes and a profit of 116 per cent in the quarter ended December 2021.
The FD and RD referral services will be offered to Fino Bank’s over 3.9 million customers who are aspirational and need access to these products to ensure their financial needs are met. The service is expected to go live in Q2 FY23, Fino Payments Bank said in the statement dated April 20.
The association is the second between Fino Bank and SSFB and the first one as listed entities, the bank said in the statement on Wednesday. Earlier, Fino partnered with SSFB to offer sweep account facility to its customers to address the Rs 1 lakh end of the day deposit limit, which was later revised to Rs 2 lakh.
Commenting on the development, Ashish Ahuja, the Chief Operating Officer, Fino Payments Bank said, “Fino’s objective is to be a one stop shop for all banking related products and services. Continuous product innovation, either own or through partnerships, is one of the core pillars of our model. Term deposits are great financial planning and security instruments. We believe the addition of fixed and recurring deposits to our existing range of offerings will further enhance customer engagement and experience. We are pleased to partner with Suryoday SFB to offer these products and further strengthen our already existing association.”
“Extending the reach of our products through innovative distribution channels is critical for us. We are excited to partner and offer our term deposit services to Fino Payments Bank’s customers. We look forward to a mutually beneficial association,” said Narayan Rao, Chief Services Officer of Suryoday Small Finance Bank.
In addition to FD and RD with Suryoday SFB, Fino Bank will soon commence international remittance services with a partner having received RBI approval for the same in January 2022, Fino Bank said in its statement. Fino already cross sells offerings such as business loans, life and general insurance and gold loan referrals.
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