Fino Payments Bank backs its MD after GST arrest; FM says she will check

Fino Payments Bank says its MD Rishi Gupta and the bank had no role in alleged GST violations linked to programme managers; Finance Minister Nirmala Sitharaman says she will review the issue

Fino Payments Bank on Saturday said the alleged GST violations, in connection with which its Managing Director and Chief Executive Officer Rishi Gupta was arrested on Friday, pertain to an investigation involving certain programme managers who maintain relationships with multiple banks, including Fino Payments Bank. The bank clarified that neither Gupta nor the bank had any involvement in the actions of these programme managers.

 

“The Bank and its MD & CEO - Rishi Gupta have nothing to do with the actions of the programme managers,” said Ketan Merchant, chief financial officer, Fino Payments Bank, in a statement.

 

“We have full faith in the country’s judiciary and will continue to extend full cooperation and assistance to the authorities in the ongoing process,” he said.

   

He also sought to assure the bank’s customers, investors and stakeholders that the bank’s business operations will continue uninterrupted and there will be no impact on its services. “We stand committed to deliver on our customer centricity,” he further said.

 

Meanwhile, Finance Minister Nirmala Sitharaman took note of the issue and said she will check on it.

 

This comes after Mohandas Pai, chairman of Aarin Capital and Manipal Global Education Services, posted on X questioning the arrest.

 

“How can the CEO of a regulated bank be arrested for an issue involving a business partner? Is this not overreach? @FinMinIndia has given vast powers for GST. What safeguards exist for citizens against misuse? Please intervene,” Pai said in the post.

 

Fino Payments Bank last month received regulatory approval from the Reserve Bank of India (RBI) to reappoint Gupta as its MD and CEO for a further term of three years, effective May 2, 2026.

 

Gupta is one of the founders of Fino PayTech Limited, the holding company of Fino Payments Bank. He joined the group in 2007 as chief operating officer and chief financial officer, later serving as managing director and chief executive officer of Fino PayTech until May 2017.