Mumbai: Fino Payments Bank Limited on Wednesday sought to allay investor concerns by issuing a detailed clarification to stock exchanges in response to recent media reports and market speculation surrounding an ongoing GST-related matter.
The bank said it is not associated with any shell companies as merchants or program managers and does not have any such entities within its group structure. It also denied bypassing know-your-customer (KYC) or due diligence norms while onboarding merchants or program managers.
“The Bank has not issued any alleged fake invoices. All invoices issued are based on services utilised by program managers or merchants,” the company said in its regulatory filing.
Only GST Intelligence Probe, No Other Investigation
Fino Payments Bank clarified that the matter is currently sub-judice and that it is subject only to an investigation by the Director General of GST Intelligence (DGGI). It added that no action has been taken against any of its officials, except as previously disclosed in filings dated February 27, 2026.
The bank further stated that it has not onboarded any merchant or program manager registered outside India.
Importantly, the lender said it does not foresee any financial liability at this stage arising from the matter and that its operations continue “as usual.”
The clarification comes amid heightened scrutiny following earlier disclosures. The bank also reiterated that the Reserve Bank of India (RBI) has granted it an 18-month timeline to complete its conversion into a Small Finance Bank (SFB). It expects to complete the transition within the stipulated period, positioning itself with a “differentiated business model and assurance-first approach.”
Fino Payments Bank emphasized that trust remains central to its operations and that it will continue engaging with regulators to ensure transparency and compliance.
The development comes at a time when financial institutions are facing increased regulatory oversight over merchant onboarding practices and GST compliance, with investors closely monitoring potential contingent liabilities.