Rishi Gupta, the Managing Director and CEO of Fino Payments Bank, has been denied bail by the Telangana High Court as he faces serious allegations of masterminding a tax evasion scheme amounting to approximately ₹840 Crores. Gupta has been in judicial custody since late February 2026, following his arrest linked to accusations of orchestrating transactions with shell entities.
The investigation, conducted by the Directorate General of GST Intelligence, suggests that Gupta was involved in an organized syndicate that routed funds connected to illegal online gaming platforms. The case has raised significant concerns about financial governance within the banking sector.
In response to Gupta’s arrest, Fino Payments Bank has appointed Ketan Merchant as interim CEO for a maximum of four months. Despite the turmoil, the bank has assured stakeholders that its operations remain stable and uninterrupted, with a reported addition of around 10,000 CASA accounts daily.
Fino Payments Bank’s shares have seen a steep decline of nearly 28% since Gupta’s arrest, closing at ₹139.50, down from a 52-week high of ₹135.2. The bank’s management 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.”
Gupta’s plea to declare his arrest unlawful cited violations of constitutional rights, claiming it to be arbitrary and highhanded. “Declare the arrest of the Petitioner… to be arbitrary, illegal, highhanded and violative of Articles 14, 19, 21 and 22 of the Constitution of India,” Gupta stated.
Fino Payments Bank has acknowledged the court’s decision, emphasizing their commitment to transparency and compliance. Ketan Merchant remarked, “The Bank and its MD & CEO Rishi Gupta have nothing to do with the actions of the programme managers.”
As the situation unfolds, observers are closely monitoring the implications for Fino Payments Bank and the broader financial landscape in India. Details remain unconfirmed regarding the full extent of the investigation and its impact on the bank’s future.
