“As things stand now, there is no impact on our SFB plans,” Merchant said in an analyst call. “We are continuing our preparations on the SFB plans for which we have received an 18-month regulatory timeline that came on December 5… The Reserve Bank of India (RBI) is monitoring, and they also understand that it is up to a specific program manager… We continue to actively engage with the RBI.
Gupta was arrested late on Friday under the GST Act. Fino has said that the investigation pertains to some so-called program managers engaged by the bank as payment service providers. Managers of this program are used by banks like Fino to source and onboard clients that the bank provides services to.
Merchant said the administrators of the program in question were linked to a real-money gaming business that was banned by the government last October. The merchant said that the case is related to certain payment service providers or program managers engaged by the bank to transfer merchants for UPI collection services and is not related to the tax obligations of the bank which are respectively.
Shailesh Pandey, head of business at Fino, said the investigation mainly revolved around three service providers that do business for about 8% to 10% of the total annual production for Fino. Overall, program managers account for 80% of the bank’s through pot as a resource, he said. The impact of these service providers through the bank’s UPI will be as low as 3% to 8%, he said. The businessman assured that there has been no impact on the bank’s deposits since the arrest.
“The customer balance as of February 26, 2026 was around Rs 2,250 crore and it remains stable,” he said. “Our teams monitor these at regular intervals to ensure that customers are not facing any challenges. Our business volume has been maintained without any impact for the past three days, which is a testament to the trust of our customers, business partners, colleagues, business reporters and traders.”
Fino’s daily average CASA open numbers have been maintained at around 10,000 and have reached around $1300 million per day.
Fino shares ended nearly flat at 192.15 on the BSE. The market is closed for business on Tuesday due to Holi.
Fino Payments Bank
