Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been arrested in a significant tax evasion case involving an alleged ₹840 Crores in Goods and Services Tax (GST) evasion. The Telangana High Court recently dismissed Gupta’s writ petition seeking bail, which claimed his arrest was unlawful.
Gupta’s arrest is rooted in accusations that he masterminded transactions with shell entities, facilitating an organized syndicate that routed funds linked to illegal online gaming platforms. He has been in judicial custody since late February 2026, and his plea sought to declare his arrest as arbitrary and violative of constitutional rights.
Fino Payments Bank has responded to the crisis by appointing Ketan Merchant as interim CEO for a maximum of four months. Despite the turmoil, the bank’s operations remain stable and uninterrupted, with a notable addition of approximately 10,000 CASA accounts daily.
In the wake of Gupta’s arrest, Fino Payments Bank’s shares have experienced a sharp decline, plummeting nearly 28% since the incident. The bank’s share price fell to ₹135.2, marking a 52-week low, closing at ₹139.50 after trading on the day of Gupta’s arrest.
The Directorate General of GST Intelligence’s ongoing investigation has revealed that the estimated tax evasion amount could reach ₹2800 Crores based on the transactions involved. Fino Payments Bank has stated, “The Bank shall continue to engage constructively with regulators and stakeholders and shall make appropriate disclosures in accordance with applicable laws and regulatory requirements.”
Merchant, the interim CEO, emphasized, “The Bank and its MD & CEO Rishi Gupta have nothing to do with the actions of the programme managers,” attempting to distance the bank from the allegations against Gupta.
Fino Payments Bank had previously received in-principle approval from the Reserve Bank of India to transition into a small finance bank in December 2025, a move that could be jeopardized by the current legal challenges faced by Gupta.
As the situation unfolds, observers are keenly watching how the bank navigates this crisis and what further developments may arise from the ongoing investigations. Details remain unconfirmed regarding the full extent of the allegations and their implications for the bank’s future.
