Navi Mumbai: After days of media speculation, Fino Payments Bank has stepped forward to draw a clear line between itself and an ongoing investigation involving certain program managers associated with multiple banks.
The bank clarified that the investigation by the Director General of GST Intelligence relates to program managers associated with multiple banks, including Fino Payments Bank Limited, and not to the bank’s own GST compliance. It emphasized that the authority’s action does not concern its internal tax practices. The matter is currently sub-judice, and the bank said it is limiting its responses accordingly.
Fino Payments Bank stated it has not evaded any GST dues and remains compliant with all regulations related to GST payments. It added that all invoices issued are based on services utilized by program managers or merchants, rejecting allegations of fake invoicing. The bank also confirmed it has made GST payments on fees or revenue earned and does not foresee any financial liability at this stage.
Addressing governance concerns, the bank said its program manager and merchant onboarding processes follow regulatory requirements. Onboarding is handled by relevant business teams and not by the Managing Director and CEO. As part of due diligence, merchants referred by program managers must have an existing banking relationship with another bank to facilitate UPI transactions. The bank also noted it does not maintain current accounts for program managers or merchants.
The bank said its operations remain normal and teams are working to avoid disruption for customers and partners. It highlighted a robust risk management framework for monitoring merchant transactions through Virtual Payments Addresses. Additionally, the Reserve Bank of India has given the bank 18 months to complete its conversion into a Small Finance Bank, and it expects to finish before the stipulated timeline. The board and senior management continue to review the situation and will provide updates through regulatory filings as required.
Disclaimer: This article is based solely on the official clarification dated March 02, 2026, filed by Fino Payments Bank Limited with the stock exchanges.
