Overview
- The Directorate General of GST Intelligence arrested MD and CEO Rishi Gupta in an alleged GST‑evasion scheme linked to online gaming funds routed through shell merchants and programme managers.
- Authorities have flagged three non‑functional programme managers and about 36 shell entities, with the alleged GST implication estimated at roughly ₹840 crore from inferred turnover.
- In a March 4 clarification, the bank denied links to shell companies, rejected claims of fake invoices, said it has paid GST on its revenues, and stated it does not foresee financial liability.
- CFO Ketan Merchant is overseeing daily operations under a board committee, with liquidity described as stable, customer balances around ₹2,250 crore, about 10,000 CASA accounts opened daily, and average throughput near ₹1,300 crore.
- Management said the small finance bank conversion remains within the RBI’s 18‑month window, noted real‑money gaming merchants were blocked in August 2025, and said the three flagged programme managers accounted for 8–10% of annual throughput; shares were down about 2.3% intraday.