Rishi Gupta, Managing Director and Chief Executive Officer of Navi Mumbai-based Fino Payments Bank, has been arrested under the CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) Acts, the company said in a regulatory filing late on Friday.
It further said that the investigation did not relate to the bank but pertained to one of its business partners.
“Pursuant to Regulation 30 of the SEBI Listing Regulations, we would like to inform that an arrest has been made of Mr. Rishi Gupta, Managing Director (“MD & CEO”) of Fino Payments Bank Limited (“Bank”) under the provisions of Section 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017, respectively, on February 27, 2026,” the lender said in the exchange filing.
Pursuant to the arrest, the bank has appointed its Chief Financial Officer, Ketan Merchant, as the head of the organisation to manage operations in the meantime. The decision was taken in a special board meeting on Friday.
“A special Board Meeting was convened today wherein Mr. Ketan Merchant, Chief Financial Officer of the Bank, was appointed as Head of the Organization by the Board to carry on and oversee the day-to-day operations of the Bank in the absence of Mr. Rishi Gupta, Managing Director & CEO of the Bank, until otherwise resolved by the Board or till Mr. Rishi Gupta resumes office, whichever is earlier,” it said.
Fino Payments Bank is the only payments bank in the country to be listed on the stock exchanges. The lender said that it was cooperating with the authorities to provide all the necessary information and was also taking appropriate measures “to address and overcome the above situation.”
It assured investors that the arrest did not have any material impact on the bank, as the action against Gupta was taken in his personal capacity.
None of the bank’s officials were involved in the matter. In case of any impact in the future, appropriate disclosure will be made to the stock exchanges, it said.
