Fino PB to complete SFB transition within RBI's timeline, says management
March 02, 2026
Fino Payments Bank said it will complete its transition into a small finance bank within RBI's 18-month timeline and does not foresee any financial liability amid the GST probe.
MD & CEO Rishi Gupta's arrest over alleged GST violations will not have impact on the bank's operations and its transition into SFB will be completed well within the 18-month timeline set by the RBI
The bank also clarified that it does not see any financial liability at this point on account of the matter in question, and all its operations and businesses are working as usual (Image: Company website)
Subrata Panda Mumbai
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Fino Payments Bank on Monday clarified that its conversion into a small finance bank (SFB) will be completed before the stipulated timeline of 18 months given by the Reserve Bank of India (RBI), indicating that the arrest of Rishi Gupta, MD & CEO of the bank, due to GST-related violations will not have a bearing on the bank’s transition into an SFB.
“The bank has been proactively engaging with all the stakeholders, including the regulators, to ensure transparency and commitment. The RBI has given us a timeline of 18 months to complete the conversion of the bank into an SFB. We expect to complete the process before the stipulated timeline,” the bank said in an exchange filing early on Monday, adding that it has been proactively engaging with all stakeholders, including regulators, to ensure transparency and commitment.
In December last year, RBI granted its in-principle approval for the conversion. Fino has up to 18 months to make the transition into an SFB. Fino is the first and the only payments bank so far to apply for conversion into an SFB. The in-principle nod came nearly two years after Fino applied for an SFB licence. As an SFB, Fino will be able to lend to individuals and companies.
The bank also clarified that it does not see any financial liability at this point on account of the matter in question, and all its operations and businesses are working as usual. “All our teams are committed to ensure there is no inconvenience caused to our customers, business partners, program managers and any other business affiliates,” the bank said.
The bank has vehemently denied evading any GST dues and said it is compliant with all regulations relating to payment of GST. “The bank has not issued any alleged fake invoice. All invoices issued are based on the services utilised by the program manager(s)/merchants. The bank has made its GST payments and complies with related regulations with respect to the fees/revenue earned by the bank,” it said.
According to reports, an investigation by the Directorate General of GST Intelligence (DGGI) into alleged banned online money gaming has led to the arrest of Gupta. The DGGI is probing suspected GST evasion of several crores linked to online money gaming activities, which are stated to be banned.
The bank said the investigation by the DGGI was in relation to the program manager(s) associated with multiple banks, including Fino Payments Bank, and not on the GST compliance of the bank itself.
Program managers are the entities that source merchants for the bank for UPI transactions.
The bank and its officials have nothing to do with the business/actions of the program manager(s) in question, it said, adding that the bank does not directly or indirectly engage or promote any kind of betting activity through any forum, website, platform or in any form.
According to the bank, its program manager/merchant onboarding process is in line with regulatory requirements and the said due process has been followed. “Onboarding is being done by the concerned business/relevant teams and not the MD & CEO of the bank. Further, as part of the onboarding checks, one pre-condition is that the merchants referred by the program manager(s) need to have an existing banking relationship with another bank for facilitating the UPI transactions,” it said.
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First Published: Mar 02 2026 | 9:06 AM IST
The bank also clarified that it does not see any financial liability at this point on account of the matter in question, and all its operations and businesses are working as usual (Image: Company website)
Subrata Panda Mumbai
Listen to This Article
Fino Payments Bank on Monday clarified that its conversion into a small finance bank (SFB) will be completed before the stipulated timeline of 18 months given by the Reserve Bank of India (RBI), indicating that the arrest of Rishi Gupta, MD & CEO of the bank, due to GST-related violations will not have a bearing on the bank’s transition into an SFB.
“The bank has been proactively engaging with all the stakeholders, including the regulators, to ensure transparency and commitment. The RBI has given us a timeline of 18 months to complete the conversion of the bank into an SFB. We expect to complete the process before the stipulated timeline,” the bank said in an exchange filing early on Monday, adding that it has been proactively engaging with all stakeholders, including regulators, to ensure transparency and commitment.
In December last year, RBI granted its in-principle approval for the conversion. Fino has up to 18 months to make the transition into an SFB. Fino is the first and the only payments bank so far to apply for conversion into an SFB. The in-principle nod came nearly two years after Fino applied for an SFB licence. As an SFB, Fino will be able to lend to individuals and companies.
The bank also clarified that it does not see any financial liability at this point on account of the matter in question, and all its operations and businesses are working as usual. “All our teams are committed to ensure there is no inconvenience caused to our customers, business partners, program managers and any other business affiliates,” the bank said.
The bank has vehemently denied evading any GST dues and said it is compliant with all regulations relating to payment of GST. “The bank has not issued any alleged fake invoice. All invoices issued are based on the services utilised by the program manager(s)/merchants. The bank has made its GST payments and complies with related regulations with respect to the fees/revenue earned by the bank,” it said.
According to reports, an investigation by the Directorate General of GST Intelligence (DGGI) into alleged banned online money gaming has led to the arrest of Gupta. The DGGI is probing suspected GST evasion of several crores linked to online money gaming activities, which are stated to be banned.
The bank said the investigation by the DGGI was in relation to the program manager(s) associated with multiple banks, including Fino Payments Bank, and not on the GST compliance of the bank itself.
Program managers are the entities that source merchants for the bank for UPI transactions.
The bank and its officials have nothing to do with the business/actions of the program manager(s) in question, it said, adding that the bank does not directly or indirectly engage or promote any kind of betting activity through any forum, website, platform or in any form.
According to the bank, its program manager/merchant onboarding process is in line with regulatory requirements and the said due process has been followed. “Onboarding is being done by the concerned business/relevant teams and not the MD & CEO of the bank. Further, as part of the onboarding checks, one pre-condition is that the merchants referred by the program manager(s) need to have an existing banking relationship with another bank for facilitating the UPI transactions,” it said.
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Mar 02 2026 | 9:06 AM IST