New Delhi: Rishi Gupta, Managing Director and Chief Executive Officer of Fino Payments Bank Limited, was arrested under the provisions of the Central GST and State GST Acts, according to a regulatory disclosure by the bank. The arrest was carried out by the Directorate General of GST Intelligence (DGGI), the investigative arm of the Goods and Services Tax department, in Hyderabad.
The bank clarified that the investigation is related to a business partner and is not connected to the company’s own GST compliance. The lender further stated that it is taking appropriate steps to address the situation and manage any operational impact arising from the case. As part of interim management arrangements, Chief Financial Officer Ketan Merchant has been assigned to oversee the bank’s day-to-day operations until further notice.
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Probe Linked to Business Partner
In its exchange filing under SEBI listing regulations, the company said the investigation does not pertain to its internal tax compliance. The bank also added that there is currently no operational impact on business activities. However, it stated that any future material development will be disclosed to stock exchanges as required.
The arrest reportedly took place under GST law enforcement action initiated by the tax intelligence agency. The Ground of Arrest was issued on February 27, 2026, at around 3:55 a.m., according to official sources.
Regulatory Context and Expansion Plans
Recently, the payments bank received in-principle approval from the Reserve Bank of India for conversion into a small finance bank. The transition is expected to allow the institution to offer lending services, which are currently not permitted under the payments bank framework.
Fino Payments Bank Limited is the only publicly listed entity in the payments bank segment in India. The company has been expanding its digital and financial inclusion services across the country.
Authorities have not disclosed detailed allegations related to the GST case. The investigation is believed to be connected to a business partner’s operations rather than the bank’s core business activities. The company assured investors and customers that customer services and financial operations remain stable. It also reiterated its commitment to cooperate with the investigating authorities.
The case is being examined by GST intelligence officials, and further legal proceedings are expected as the probe continues. The bank stated that it will issue additional disclosures if the investigation results in any material impact on its business or financial position.
