Following a recent set of events that culminated in the arrest of CEO Rishi Gupta in a multi-crore GST evasion case, Fino Payments Bank has reassured investors that the bank has nothing to do with the GST probe, distancing itself from the fiasco and its top executives from any alleged wrongdoing.
In a recent exchange filing, Fino Payments Bank stated that the ongoing GST probe is directed at a program manager associated with multiple banks rather than Fino Payments Bank itself. The lender further emphasised that neither the institution nor its officials have anything to do with the actions, operations or alleged misconduct of the program manager.
Addressing some of the claims that surfaced during the recent investigation, Fino Payments Bank categorically denied any alleged fake invoices being dished out, adding that the bank does not maintain any current accounts for merchants.
The exchange filing also went on to detail Fino Payments Bank's internal procedures as far as merchant acquisition is concerned. The bank pointed out how the merchant onboarding process strictly complies with all regulatory requirements and that the onboarding procedure is handled by internal teams rather than the managing director and chief executive officer, who has been implicated in this case.
Fino Payments Bank stated that it does not foresee any financial liability originating from the current GST investigation, confirming that its daily operations and business activities continue as usual without any meaningful disruption.
This comes on the back of recent events that rocked the fintech industry, with several industry leaders urging the government to take strict action, with even the Payments Council of India writing to the Finance Minister Nirmala Sitharaman.
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