Fino Payments Bank’s Managing Director and CEO, Rishi Gupta, has been arrested on Friday under the CGST and SGST tax laws. The bank said that the investigation is not related to its own GST payments or tax compliance. Instead, it is about a business partner connected to the bank. The bank shared this information in a filing to the stock exchanges under SEBI rules.
The arrest was made in Hyderabad by the Directorate General of GST Intelligence (DGGI), which investigates GST-related matters. According to the bank, the official “Ground of Arrest” notice was issued to the CEO on February 27, 2026, at 3:55 a.m.
Fino Payments Bank said that there is currently no impact on its operations. However, if there is any impact in the future, it will inform the stock exchanges. In the meantime, the bank’s Chief Financial Officer, Ketan Merchant, has been given charge to lead the company and manage daily operations.
Recently, the bank also received in-principle approval from the Reserve Bank of India to convert into a small finance bank. This is important because after conversion, the bank will be allowed to give loans — something payments banks are normally not allowed to do. Fino is also the only payments bank in India that is publicly listed on the stock exchange.
