Fino Payments Bank, amid the challenges following the arrest of its Managing Director and CEO Rishi Gupta for alleged GST evasion, has reaffirmed its commitment to transitioning into a small finance bank (SFB) without disruption. The bank, which received in-principle approval from the Reserve Bank of India (RBI) in December 2025 for this transition, remains on track within the regulatory timeline.
During discussions with investors, the management assured that the ongoing situation has no bearing on the SFB conversion process. Ketan Merchant, the bank’s Chief Financial Officer and now serving as the interim head, emphasized proactive engagement with regulators and stakeholders to ensure a smooth transition.
Despite the recent allegations involving Gupta in an investigation related to GST evasion, Fino Payments Bank clarified that the case pertains to program managers and not the bank itself. The bank underscored its compliance with GST obligations on revenues earned.
With a focus on a differentiated business model and a customer-centric approach, Fino Payments Bank aims to complete the SFB conversion ahead of the stipulated 18-month timeline, as mandated by the RBI.
Source: Inc42 Media