Regarding the arrest of Fino Payments Bank MD Rishi Gupta, the bank stated that the matter is not related to the bank’s operations or tax compliance. It is part of an ongoing investigation against external partner companies. GST Intelligence arrested Rishi Gupta on February 27th. This is the largest action against tax evasion in the country since the ban on online gaming was implemented in August 2025. Following this news, the bank’s shares fell by 15% on Monday. However, after the bank’s response, the shares closed flat at ₹190. Transactions worth ₹3,000 crore were routed through Fino Bank’s gateway. Partner companies provide ‘real money gaming’ services. It is alleged that they underreported GST. According to investigating agencies, transactions worth approximately ₹3,000 crore were routed through Fino Bank’s payment gateway and ‘dummy merchants’ after the gaming ban was implemented in August 2025.
Fino Bank said – The talk of GST liability is wrong. Fino Bank said that all the talk of GST liability on the bank is completely wrong and baseless. The bank has taken advice from senior legal advisors in this matter. The management says that it is not right to drag the bank into this ongoing investigation against the partners. The functioning of the bank will not be affected. Ketan Merchant has been appointed as the Head of Organization to ensure the smooth functioning of the bank in the absence of the CEO. The bank has said that they have put in place safeguards so that the stability and daily operations of the bank are not affected. The management has assured that the financial position of the bank is strong and they are following the regulatory standards.
