Fino Payments Bank said the approval was received from the RBI via a letter dated May 25, 2026. The extension follows the company’s earlier communication dated May 21, 2026.
This follows Fino Payments Bank’s announcement on February 27 that its Managing Director and CEO, Rishi Gupta, had been arrested under the CGST Act, 2017 and the SGST Act, 2017.
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“…we would like to inform that an arrest has been made of Rishi Gupta, Managing Director (“MD & CEO”) of Fino Payments Bank Limited (“Bank”) under the provisions of section 132(1)(a) and 132(1) (i) of the CGST and SGST Act, 2017, respectively on February 27, 2026,” according to a stock exchange filing.
The bank said the investigation relates to business partners of the bank and not to its GST compliance. It stated that none of the bank’s officials are involved and that officials are cooperating with the investigation.
The arrest was made only in respect of Rishi Gupta. The bank said there is, at present, no impact on its operations or financials and that any future impact will be disclosed to the stock exchanges. The matter remains under review.
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A special board meeting was convened on February 27, during which it appointed Ketan Merchant, Chief Financial Officer, as head of the organisation to oversee the bank’s day-to-day operations in the absence of Rishi Gupta, until otherwise decided by the board or until he resumes office, whichever is earlier.
Merchant said, “Further to our stock exchange disclosure dated February 27, 2026, the bank wishes to inform that we have strong corporate governance, compliance framework and robust processes in place. As a regulated entity, we are compliant with all the laws, including GST.
“The issue is with regard to a GST investigation pertaining to our business partner(s). The bank and its MD & CEO, Rishi Gupta, have nothing to do with the actions of the business partner(s).”
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He added, “We would like to further assure… that our business operations will continue uninterrupted and there will be no impact on our services.”
Shares of FINO Payments Bank Ltd ended at ₹128.70, up by ₹3.40, or 2.71%, on the BSE today, May 26.
(Edited by : Shoma Bhattacharjee)
First Published: May 26, 2026 5:29 PM IST
