Fino Payments Bank on Wednesday said it has received the RBI approval for commencing referral services of fixed deposit (FD) and recurring deposit (RD) on behalf of a partner bank. 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).

The association is the second between Fino Bank and SSFB and the first one as listed entities, the payment bank said in a statement.

Earlier, Fino partnered with SSFB to offer a 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.

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 statement said.

The service is expected to go live in the second quarter of FY23.