Fino Payments Bank Denies Links to Betting or Gaming Activities Amid Probe Reports

Fino Payments Bank on Monday denied any involvement in betting or gaming activities after media reports suggested that the Directorate General of GST Intelligence (DGGI) may recommend a probe by the Enforcement Directorate (ED) into certain online gaming transactions linked to the bank over suspected money laundering. In an exchange filing, the bank described the reports about a possible investigation under the Prevention of Money Laundering Act (PMLA) and ED involvement as “non-factual and speculative.”

The bank clarified that it is not under investigation by any authority other than the Hyderabad unit of the DGGI. According to the lender, the ongoing inquiry relates to certain programme managers and merchants associated with multiple banks, including Fino, and does not concern the bank’s own GST compliance. The company also rejected media claims that a court had rejected bail in the matter, calling such reports “completely incorrect.”

On February 27, managing director and chief executive officer Rishi Gupta was arrested under provisions of the Central Goods and Services Tax Act and State Goods and Services Tax Act in connection with the investigation, which the bank said relates to a business partner. Following the arrest, chief financial officer Ketan Merchant was appointed interim CEO. Despite the developments, the bank said deposits have grown nearly 9 per cent in the past two weeks to reach ₹2,900 crore as of March 13, while around 1.5 lakh new accounts were opened during the same period. Meanwhile, the bank’s shares fell sharply on Monday, hitting a record low before closing about 17 per cent lower.

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