Fino Payments Bank Managing Director and CEO Rishi Gupta has been arrested by tax authorities under provisions of the Goods and Services Tax (GST) law, the company confirmed in an exchange filing.
Gupta was taken into custody by officials from the Directorate General of GST Intelligence in Hyderabad as part of an ongoing investigation. The case relates to alleged violations under the GST Act, though the bank clarified that the matter is linked to certain business partners and not to the bank’s own GST filings.
In its statement, Fino Payments Bank said it is cooperating fully with investigators and is providing all required documents and information. The bank also sought to reassure customers and investors that its daily operations continue as usual and that there has been no disruption to services.
Following the arrest, the board of directors moved quickly to ensure continuity in leadership. Chief Financial Officer Ketan Merchant has been appointed interim head of the organisation until further decisions are taken regarding the CEO’s position.
Under the GST law, certain violations, including alleged irregularities in invoicing or tax reporting, can attract criminal proceedings if authorities believe there was intent to evade taxes. However, detailed allegations in this specific case have not yet been made public.
The arrest of a sitting CEO of a listed financial institution has drawn attention across the banking and corporate sectors. Industry observers note that regulatory scrutiny around tax compliance has increased in recent years, particularly in cases involving partnerships and third-party transactions.
Fino Payments Bank, which focuses on serving underbanked and rural customers through digital and assisted banking services, said it will keep regulators informed of any significant developments. For now, the company maintains that business remains steady as the legal process unfolds.
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