Fino Payments Bank shares tank 14% after CEO's arrest
02 Mar 2026

Shares of Indian fintech company Fino Payments Bank plummeted by as much as 14.1% on Monday.

The fall came after the bank announced that its Managing Director and CEO, Rishi Gupta, had been arrested under the Goods and Services Tax (GST) law.

At the time of writing, shares were down by 5.2% at ₹182.5 per share against a benchmark Nifty 50 index trading at a loss of 1%.

Gupta's arrest not related to bank's GST compliance: Fino
Clarification

In a statement issued late on Friday, Fino clarified that Gupta's arrest is not related to the bank's own GST compliance.

The investigation is linked to program managers associated with multiple banks and business partners, the bank said.

In light of Gupta's absence, Chief Financial Officer Ketan Merchant will take over operations.

PCI seeks urgent intervention, writes to FM
Industry response

The arrest of Gupta has sent shockwaves through the financial services ecosystem.

The Payments Council of India (PCI), which represents digital payments companies, has written to Finance Minister Nirmala Sitharaman seeking urgent intervention and greater proportionality in enforcement action.

PCI's letter emphasized that attributing personal liability to senior leadership for alleged third-party non-compliance could have serious implications for governance continuity within regulated financial institutions.

Incident revives concerns about GST enforcement practices among fintech founders
Enforcement scrutiny

The incident has reignited concerns about GST enforcement practices among fintech founders.

In January 2025, the Directorate General of GST Intelligence raided Policybazaar and InsuranceDekho.

T V Mohandas Pai, former CFO of Infosys, also raised concerns about alleged overreach by GST authorities on social media.

Sitharaman said she was looking into the issue after several industry leaders expressed support for Gupta online.

RBI approved Gupta's reappointment as MD, CEO last month
Approval

The Reserve Bank of India (RBI) approved Gupta's reappointment as MD and CEO in February.

This development also follows RBI's approval in December for Fino to convert into a small finance bank.

The transition would enable Fino to accept higher deposits, provide loans and credit facilities, and expand its current payments bank activities.