Fino Payments Bank Ltd said that its Chief Financial Officer Ketan Merchant has been named Head of the Organisation to to carry on day-to-day operations following the arrest of Managing Director and Chief Executive Officer Rishi Gupta under provisions of Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Acts, 2017, respectively, on February 27, 2026.
The bank clarified that the investigation pertains to certain business partners and not to its own GST compliance.
In a regulatory filing, the bank said a special Board meeting was convened on Friday following the development. The Board appointed CFO Ketan Merchant as the Head of the Organisation to carry on and oversee the day-to-day operations of the bank in Gupta’s absence, until further resolution by the Board or until Gupta resumes office, whichever is earlier.
The arrest has been made only in respect of Gupta, the bank said, adding that none of its other officials are involved in the matter. It reiterated that the investigation relates to programme managers who have relationships with multiple banks, including Fino Payments Bank, and not to the bank’s own operations or GST compliance.
“The Bank has strong corporate governance, compliance framework and robust processes in place. As a regulated entity, we are compliant with all laws, including GST,” the statement said.
The bank said it is cooperating fully with authorities and providing all necessary information as part of the ongoing investigation. At present, there is no impact on the bank’s operations, it added, noting that any future material impact, if any, would be disclosed to stock exchanges.
Expressing confidence in the judicial process, the bank said it remains committed to ensuring uninterrupted services to customers and maintaining stakeholder trust.
“We have full faith in the country’s judiciary and will continue to extend full cooperation and assistance to the authorities. We assure our customers, investors and stakeholders that our business operations will continue uninterrupted and there will be no impact on our services,” the bank said.