Fino Payments Bank on Monday issued a clarification responding to media speculation in the ongoing matter which stated that the alleged expansion of probe to PMLA/ED is non-factual and speculative, and the bank is currently not subject to any investigation by any authority other than the Directorate General of GST Intelligence (“DGGI”), Hyderabad.
The bank said that the ongoing investigation by the DGGI pertains to certain program manager(s) and merchants associated with multiple banks including the bank and not to the GST compliance of the bank itself.
It also deemed the rejection of bail by the court referenced in the media completely incorrect. The lender denied any direct or indirect involvement or promotion of gaming or betting activities through any platform, website or channel.
The bank said it will continue to engage constructively with regulators and stakeholders and will make appropriate disclosures in accordance with applicable laws and regulatory requirements.
On February 27, 2026, the bank’s MD & CEO Rishi Gupta was arrested for alleged GST evasion tied to online gaming funds routed through shell entities, prompting the Payments Council of India (PCI) to write to Finance Minister Nirmala Sitharaman on February 28 citing “institutional concerns” over regulatory proportionality. Following social media appeals from tech leaders, the Finance Minister publicly assured stakeholders on X that she “will check” into the situation.
Meanwhile, the bank has clarified that the investigation focuses solely on its business partners and that its day-to-day operations and transition to a Small Finance Bank remain completely stable.The board appointed CFO Ketan Merchant as interim CEO and Anup Agarwal as interim CFO for a four-month period, effective March 6, 2026.
