Background
Fino Payments Bank Ltd. is a financial services company listed on the National Stock Exchange of India. As of 23 February 2026 its share price was INR 205.02, with a market capitalisation of approximately INR 17.66 billion. The bank operates in Treasury, Corporate/Wholesale, Retail and other banking segments, offering a range of deposit, loan and insurance products through its FinoPay app, merchant services and digital payment infrastructure.
Arrest of Managing Director and CEO
On 27 February 2026, the Directorate General of GST (DGGI) arrested Rishi Gupta, the Managing Director and Chief Executive Officer of Fino Payments Bank, under the Central and State Goods and Services Tax Acts. The arrest followed allegations that the bank had employed shell companies and payment aggregators to facilitate the transfer of funds related to online money‑gaming activities that are prohibited under Indian law.
The arrest was reported by multiple national outlets, including Economic Times, Rediff.com, The Hindu and Hindustan Times. The DGGI stated that the investigation was focusing on suspected GST violations linked to the alleged financial flows.
Industry Response
The Payments Council of India (PCI), the umbrella body for digital‑payments firms, addressed the Finance Minister, Nirmala Sitharaman, expressing concern over the incident. PCI highlighted that the arrest could impact confidence in the fintech ecosystem and requested that the Ministry monitor the situation closely.
Finance Minister Sitharaman confirmed that she would review the case. In a statement, she said that the investigation would be “looked into” to ensure that the bank’s compliance framework is robust and that any procedural lapses are rectified.
Interim Management
Following the arrest, Fino Payments Bank appointed Chief Financial Officer Ketan Merchant as the interim head of the company. This move was reported by DevDiscourse and The Hindu, indicating that the bank intends to maintain operational continuity while the investigation proceeds.
Implications for the Bank
The incident has attracted regulatory scrutiny and media attention, potentially affecting the bank’s reputation and customer trust. Market observers note that the bank’s share price, which had been trading near its 52‑week low of INR 199.15, could experience volatility until the investigation’s outcome is clarified.
The company has maintained that the Managing Director was not involved in the alleged GST violations, asserting that the investigation should focus on the bank’s compliance processes rather than individual personnel.
Conclusion
The arrest of Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, under the GST Act marks a significant regulatory event for the Indian fintech sector. Regulatory bodies and industry associations are closely monitoring the case, while the bank has taken steps to appoint interim leadership and reassure stakeholders of its commitment to compliance. The final impact on the bank’s operations and market performance will depend on the investigation’s findings and any subsequent actions taken by the company and regulators.
