Fino Bank employees defraud merchants of Rs 35.55 crore; investigation reveals misconduct

27 Jan 2025, 11:38 AM

The payments bank hired KPMG to conduct an independent investigation.

Team Head&Tale

Fino Payments Bank, in an exchange filing, disclosed about complaints it received regarding alleged fraudulent schemes involving some of its employees. 

The complaints, which were raised by clients, merchants, and distributors in Gujarat, Maharashtra, and Mumbai, claimed non-repayment of funds tied to fake schemes related to cash management systems and gold loan referrals. 

These issues reportedly occurred between December 2021 and April 2023, Fino said.

The payments bank hired KPMG to conduct an independent investigation. 

The findings revealed that a few employees had acted without authorization and misled people while operating in their personal capacity. The bank also noted that some complainants might have been involved in these activities, though this could not be fully confirmed.

"The total amount claimed by complainants was around Rs 35.55 crore. However, since no clear evidence was provided to back these claims, the bank has closed the complaints and sent closure letters to those involved." 

Fino Payments Bank claimed that it has not suffered any financial losses or gained from these incidents and sees no direct impact on its operations.

The bank also reported the fraud to regulatory authorities, including the Reserve Bank of India (RBI)

Fino even said that it has taken disciplinary action, including termination, against the employees involved. And, it has also made police complaints and FIRs have been filed at various locations, including Nalasopara East, Turbhe, and Navi Mumbai, with additional complaints filed as recently as December 2024.