Fino Payments Bank CEO arrested in GST probe linked to business partner, board names interim head

Rishi Gupta, Managing Director and CEO of Fino Payments Bank, was arrested on February 27 under provisions of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts, the bank said in a regulatory filing.

The bank clarified that the investigation relates to certain business partner(s) and not to its own GST compliance.

The lender said it is cooperating with authorities and providing all necessary information. “Presently there is no impact on the bank. In case of any impact in the future, appropriate disclosure will be made to the stock exchanges,” it added.

In a disclosure to the BSE and NSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the lender said Gupta was arrested under Section 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017 on February 27, 2026. The ground of arrest was issued at 03:55 a.m. (IST).

Fino Payments Bank also stated that the arrest has been made only in respect of Gupta and that none of the bank’s officials are involved in the matter. The development has been reported to the Reserve Bank of India (RBI), the filing noted. The estimated amount involved, if any, remains under review.

Following the arrest, the board convened a special meeting on Friday evening, which commenced at 06:45 p.m. and concluded at 07:06 p.m. During the meeting, Chief Financial Officer Ketan Merchant was appointed as Head of the Organisation to carry on and oversee the day-to-day operations of the bank in Gupta’s absence. Merchant will remain in charge until otherwise resolved by the board or until Gupta resumes office, whichever is earlier.

“The Bank is actively taking appropriate measures to address and overcome the above situation,” the company said, adding that the disclosure is also available on its website.

In a statement, Ketan Merchant, Chief Financial Officer, Fino Payments Bank Limited, said, "Following our stock exchange disclosure dated February 27, 2026, we would like to reiterate that the Bank maintains strong corporate governance standards, a sound compliance framework and robust internal processes. As a regulated entity, we adhere to all applicable laws, including GST regulations. The matter pertains to a GST investigation involving certain business partner(s). The Bank and its MD & CEO, Mr. Rishi Gupta, are not connected with the actions of these business partner(s). We have full faith in the country’s judicial system and will continue to cooperate fully with the authorities in the ongoing proceedings."

"We also wish to assure our customers, investors and all stakeholders that our operations remain normal and uninterrupted, with no impact on services. We remain steadfast in our commitment to customer centricity and delivering consistent value," the statement added.