Fino Payments Bank Shares Drop Nearly 17% on Report of Possible ED Scrutiny

Fino Payments Bank share price witnessed a sharp decline on Monday, falling nearly 17 per cent and hitting a fresh record low of Rs 136.35 during the trading session. Trading volume in the stock also surged sharply during the session, with around 56.60 lakh shares exchanged on the National Stock Exchange of India. This was nearly 8.8x as compared to the 30 day average volume of about 6.45 lakh shares.

Reports Link Transactions to Online Gaming Platforms

According to media reports certain online gaming transactions linked to the bank could come under scrutiny from the Enforcement Directorate. The investigation is reportedly connected to a broader probe into suspected irregularities and Tax evasion in the online betting and gaming ecosystem. In this context, agencies such as the Directorate General of GST Intelligence (DGGI) are said to be reviewing financial flows linked to these platforms, which may eventually lead to further scrutiny by enforcement authorities.

The investigation is part of a broader crackdown on possible financial irregularities in the online gaming sector. Authorities are examining large volumes of transactions processed through digital payment systems to check whether any rules were violated. These probes usually focus on issues such as possible money laundering or tax evasion linked to gaming and betting platforms, which has increased concerns across the fintech and digital payments industry.

Bank Issues Clarification

• Fino Payments Bank stated that it is currently not under any investigation by the Enforcement Directorate.
• The bank clarified that it has not received any official communication from the agency regarding such a probe.
• It described the reports circulating in the market about an ED investigation as speculative in nature.
• The company emphasized that it fully complies with all regulatory guidelines and continues to cooperate with authorities whenever required.
• According to the bank, any review by investigative agencies is related to certain merchants or third-party program managers, and not the bank directly.
• The lender added that its role is limited to providing payment services infrastructure, and it follows all required compliance procedures while onboarding partners and processing transactions.

Legal Update:

Fino Payments Bank is heading to the High Court of Karnataka to fight for the release of Rs 11.92 crore that has been frozen for a year. The situation started back in March 2025, when investigators (CID) locked the funds because they were looking into a case where a suspect allegedly used four of Fino’s local merchants for transactions.

The bank is standing its ground, making it clear that neither the company nor its staff did anything wrong, the issue is strictly about how outside merchants used their platform. While the local court recently refused to unfreeze the money, Fino is immediately appealing the decision to get its capital back and clear its name.

Business Performance:

Fino Payments Bank continues its normal operations. On March 14, 2026, the bank reported that total deposits reached a record high of approximately Rs 2,900 crore. This follows a deposit growth of nearly 9 per cent over the previous two weeks.

People are signing up, with 1.5 lakh new accounts opened since late February about 10,000 every day. This shows that customers across India trust the bank’s "phygital" model, which uses neighborhood shops and digital tools to make banking easy for everyone.

Institutional Outreach and Market Clarification

In an effort to maintain transparency and address market sentiment, Fino Payments Bank held a high-level institutional meeting today, March 16, 2026. Representatives of the bank met in person with "Deep Financial Consultants Pvt Ltd" at the Bandra-Kurla Complex (BKC) in Mumbai to discuss business updates. These outreach efforts come as the bank moves to clarify its position following speculative reports regarding external investigations. The bank has emphasized that its role is limited to providing payment infrastructure and that it remains fully compliant with all regulatory guidelines while continuing to cooperate with authorities as required.

Disclaimer: The article is for informational purposes only and not investment advice.