Fino Bank CEO Arrested: Operations Unaffected

Fino Payments Bank announced on February 27, 2026, that its Managing Director and CEO, Rishi Gupta, was arrested under the CGST Act, 2017, and SGST Act, 2017. The bank clarified that the investigation is related to its business partners and not its own GST compliance, assuring that no bank officials are involved and operations remain unaffected.

In response to Gupta's absence, a special board meeting on May 26, 2026, appointed Chief Financial Officer Ketan Merchant as interim head. The Reserve Bank of India (RBI) has since approved a further three-month extension for Merchant's tenure as interim CEO, starting May 27, 2026. Merchant reiterated that the bank has strong governance and is compliant with all laws, emphasizing that the issue lies with business partners.

Merchant further assured stakeholders that business operations would continue uninterrupted, with no impact on services. Fino Payments Bank's shares closed at ₹128.70 on May 26, 2026, showing a marginal increase.