Payments Council writes to FM Sitharaman over Fino Bank CEO’s arrest

Mumbai: The Payments Council of India (PCI), the industry association representing India’s digital payments and fintech ecosystem, has written to Union Finance Minister Nirmala Sitharaman raising institutional concerns following the recent arrest of Rishi Gupta, Managing Director and Chief Executive Officer of Fino Payments Bank.

In its representation to the Finance Ministry, the PCI reaffirmed its full respect for the authority of enforcement agencies and the due process of law, clarifying that it does not comment on the merits of the ongoing investigation.

However, the industry body said it was placing before the government certain broader principles relating to accountability attribution within multi-layered, regulated financial ecosystems.


“India's regulated payments ecosystem has been built on a foundation of institutional trust, governance integrity, and collaborative engagement with regulators,” said Vishwas Patel, Chairman of the Payments Council of India and MD of AvenuesAI Ltd. “While we have full faith in the enforcement process, we believe it is important for the industry to articulate concerns around proportionality and governance continuity when supervised institutions and their leadership are involved. We have placed these considerations before the Honourable Finance Minister in a spirit of constructive engagement and remain committed to building a compliant, resilient, and inclusive financial ecosystem.”

According to the PCI, regulated financial institutions operate across complex networks comprising merchants, technology partners, and business correspondents. In such environments, questions surrounding personal attribution to senior leadership in matters linked to alleged third-party non-compliance can have far-reaching implications, it said.

The Council noted that such developments may affect governance continuity, depositor and investor confidence, and ongoing regulatory engagements, particularly when institutions are under active supervisory oversight.

The PCI further pointed out that Gupta had recently received regulatory approval for his reappointment as MD and CEO. It also highlighted that Fino Payments Bank had been granted in-principle approval by the Reserve Bank of India to transition into a Small Finance Bank — a development it described as reflective of substantive supervisory engagement.

The PCI said it has requested the Finance Minister’s consideration of these broader institutional dimensions, expressing full confidence in India’s legal and regulatory framework.