Rishi Gupta, the MD and CEO of the Fino Payments Bank, was arrested on Friday under the CGST, SGST act. The information was disclosed by the bank in exchange filing under regulation 30 of the SEBI listing regulations.
The bank said that the investigation relates to business partners of the bank and not related to the GST compliance. It added that it is actively taking appropriate measures to address and overcome the situation.
It further informed that it has appointed Ketan Merchant, the Chief Financial Officer (CFO), as head of the organisation to carry on and oversee the day-to-day operations.
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Merchant will oversee the operations in the absence of the MD and CEO, until otherwise resolved by the board or till Gupta resumes office.
"The Bank is co-operating with the authorities to provide all the 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," Fino Payments said in filing.
The lender stated that none of the bank's officials are involved and officials of the Bank are cooperating with the investigation.
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"The matter remains under review. Any further material development in this regard will be disclosed in due course."
The lender received 'in-principle' approval from the Reserve Bank of India to transition into a small finance bank in December 2025.
Meanwhile, reacting to Gupta's arrest, Rajesh Narain Gupta, the founder and chairman of SNG & Partners, said that the arrest of the CEO of Fino Bank has created a shock wave amongst bankers and professionals.
"On one hand, the most respected regulator, RBI, confirmed his re-appointment after clearing fit and proper criterion while on the other hand, the GST department arrested him as a common criminal," Rajesh Narain Gupta said in a statement.
Stating that Gupta may be discharged in a few days, he asked who would restore his self pride, image and position.
"Why immediate arrest happens under GST laws? The government should re-examine the draconian provisions. It's heartbreaking in a civilised society to face such situations."
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