Fino Payments Bank Limited has issued a clarification regarding recent media reports and speculations concerning an investigation by the Director General of GST Intelligence. The bank emphasizes that the authority's inquiry is related to program managers associated with multiple banks, including Fino Payments Bank, and not directly on the bank's own GST compliance. Program managers are identified as entities that source merchants for the bank's UPI transactions. The bank stated that it is cooperating with the authorities and providing all necessary information. Fino Payments Bank explicitly clarified that neither the bank nor its officials are involved with the business or actions of the program managers in question. Furthermore, the bank asserted that it does not engage in or promote any form of betting activity through any platform. Fino Payments Bank confirmed that it has not evaded any GST dues and is compliant with all relevant regulations. The bank's process for onboarding program managers and merchants adheres to regulatory requirements, with due process being followed. The bank also clarified that it does not maintain current accounts for program managers or merchants; funds received through Virtual Payments Addresses (VPAs) are settled to their designated bank accounts with other public or private sector banks. In addition to addressing the GST investigation, Fino Payments Bank also provided an update on its conversion to a Small Finance Bank (SFB). The bank mentioned that the Reserve Bank of India (RBI) has granted a timeline of 18 months for this conversion, and the bank expects to complete the process before the stipulated deadline. The bank assured stakeholders of its continued commitment to transparency, compliance, and resilience, with operations proceeding as usual.
