REGULATORY · COMPETITIVE · INDIA
Fino Payments Bank leadership change after CEO arrest under GST laws
Change
Fino Payments Bank disclosed that MD & CEO Rishi Gupta was arrested by DGGI under CGST/SGST provisions (grounds issued Feb 27, 2026, 3:55 a.m.), and CFO Ketan Merchant has been appointed to lead day-to-day operations.
Why it matters
Fino Payments Bank reported that its MD & CEO was arrested by the Directorate General of GST Intelligence in Hyderabad under CGST and SGST Acts, with the grounds of arrest issued early Feb 27, 2026. The bank has appointed its CFO to head the organisation and manage day-to-day operations, creating a formal interim leadership arrangement. Because the disclosure was made under SEBI Listing Regulations (Regulation 30), the event is treated as material for public-market stakeholders and can affect governance and continuity assumptions. The bank stated the investigation pertains to a business partner and is not linked to the bank’s own GST compliance, but the arrest introduces ongoing legal/process uncertainty around senior management availability. The development lands shortly after the bank’s RBI in-principle approval to convert into a small finance bank, a process that is sensitive to management and regulatory scrutiny.
Implications
- • Immediate CEO unavailability; interim operational control shifted to the CFO.
- • Material-event disclosure under SEBI Reg 30 elevates market/governance sensitivity.
- • Potential regulatory/process friction if leadership fitness/propriety is questioned.
- • Counterparty and partner due-diligence scrutiny may increase due to the arrest context.
Who is affected
- • Fino Payments Bank board and senior management (including interim head/CFO)
- • Fino Payments Bank shareholders and public-market investors
- • RBI and other financial-sector regulators overseeing licensing/conversion processes
- • Business partners referenced in the GST investigation and related counterparties
Source
Topics
Law & Public Safety Regulatory Actions Compliance Finance & Banking Financial Services