Big news from Fino Payments Bank: CEO arrested; shares to plummet!

News Topical, Digital Desk : Another major news has come from the banking sector. This news is from Fino Payments Bank. The bank's Managing Director and CEO, Rishi Gupta, was arrested on Friday. He was arrested under the CGST and SGST Acts, the bank announced in a regulatory filing.

Following this news, Fino Payments Bank shares may see a decline. On Friday, its shares fell -7.11% to close at ₹193.49 on the NSE. All eyes will be on its shares on Monday.

In an exchange disclosure under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Regulations, the bank clarified that the investigation relates to a business partner and is not related to its own GST compliance. The bank has immediately implemented governance changes through a special board meeting to ensure operational continuity.

Under which sections was the arrest made?

Rishi Gupta was arrested under sections 132(1)(a) and 132(1)(i) of the CGST and SGST Acts, 2017. The grounds for arrest were issued at 03:55 am (IST) on February 27, 2026. The investigation relates to the bank's business partners and is not related to the bank 's GST compliance.

Ketan Merchant will take charge

The bank stated that it is actively taking appropriate steps to address the situation. It further stated that Chief Financial Officer Ketan Merchant has been appointed to head the organization and oversee day-to-day operations.

A special board meeting was convened on Friday, February 27th, in which Chief Financial Officer Ketan Merchant was appointed Head of the Organization. He will oversee the day-to-day operations of the bank in Rishi Gupta's absence. This will be until the board decides otherwise or until he returns to the office, whichever comes first.

This arrest is solely related to Rishi Gupta's case. The bank stated that its operations or finances have not yet been impacted, and that any future impact will be reported to the stock exchange. The matter is currently under review.

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