Fino Payments Bank MD, CEO arrested under GST Act

In a stern action, Rishi Gupta, Managing Director & CEO of Fino Payments Bank Ltd, has been arrested under the provisions of the CGST and SGST Act.

“Investigation is relating to business partner(s) of the Bank and not relating to the GST compliance of the Bank,” the bank said in a filing with stock exchanges. 

Further, in this regard a special Board Meeting was convened soon after the arrest wherein Ketan Merchant, Chief Financial Officer of the Bank was appointed as a Head of the Organization by the Board to carry on and he will oversee the day-to-day operations of the Bank in absence of Rishi Gupta or until otherwise resolved by the Board or till Mr. Rishi Gupta resumes office, whichever is earlier.

The Bank said it is co-operating with the authorities to provide all the necessary information.

“Presently there is no impact on the Bank. The arrest has been done only in respect of Rishi Gupta, MD & CEO of the Bank. None of the Bank officials are involved, this is investigation relating to the business partner(s) of the Bank and officials of the Bank are cooperating with the investigation,” the bank said in the filing. 

The information relating to the arrest has been disclosed to the RBI.

In a statement, Ketan Merchant, Chief Financial Officer, Fino Payments Bank said “Further to our stock exchange disclosure dated February 27, 2026, the Bank wishes to inform that we have strong corporate governance, compliance framework and robust processes in place. As a regulated entity, we are compliant with all the laws, including GST. “

“The issue is with regards to a GST investigation pertaining to our business partner(s). The Bank and its MD & CEO Rishi Gupta have nothing to do with the actions of the business partner(s),” he said.

“We have full faith in the country’s judiciary and will continue to extend full cooperation and assistance to the authorities in the on-going process,” he said.

“We would like to further assure our customers, investors and all our stakeholders that our business operations will continue uninterrupted and there will be no impact on our services. We stand committed to deliver on our customer centricity,” he added.