New Delhi: Fino Payments Bank Limited on Thursday informed exchanges that its Managing Director and CEO, Rishi Gupta, has been arrested under provisions of the Central and State Goods and Services Tax Acts.
In a disclosure under Regulation 30 of the SEBI Listing Regulations to BSE Limited and National Stock Exchange of India Ltd., the bank said Gupta was arrested under Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Acts, 2017, respectively.
According to the filing, the ground of arrest was issued at 3:55 a.m. (IST) on February 27, 2026.
The bank clarified that the investigation pertains to certain business partners and not to its own GST compliance.
“Presently there is no impact on the Bank,” the company said, adding that none of its officials are involved and that it is cooperating fully with authorities by providing necessary information.
The matter has also been reported to the Reserve Bank of India (RBI), the filing stated.
Board appoints CFO as interim head
Following the development, the bank convened a special board meeting on Thursday evening. The board appointed Ketan Merchant, Chief Financial Officer, as the “Head of the Organization” to carry on and oversee the day-to-day operations of the bank in the absence of Gupta, until further resolution or his resumption of office.
The board meeting commenced at 6:45 p.m. and concluded at 7:06 p.m., according to the disclosure.
While the bank maintained that operations remain unaffected, the arrest of a sitting MD & CEO under tax provisions could weigh on investor sentiment in the near term. Analysts will closely monitor any regulatory or enforcement developments, especially given the payments bank’s reliance on distribution partnerships and compliance frameworks.
Further material developments, if any, will be disclosed in due course, the bank said.