Fino Payments Bank CEO Arrest Sparks Industry Shockwave

Fino Payments Bank's CEO Rishi Gupta was arrested for alleged GST law violations. Following his arrest, CFO Ketan Merchant was appointed to manage operations. The bank states Gupta's arrest relates to business partners, not its GST compliance. This incident has raised discussions about stringent GST provisions.

In a surprising turn of events, Fino Payments Bank's Managing Director and CEO, Rishi Gupta, was arrested on Friday by tax authorities for alleged contraventions of the Goods and Services Tax (GST) regulations.

The bank swiftly convened a special board meeting, resulting in the appointment of Chief Financial Officer Ketan Merchant as interim head to ensure continuity in daily operations.

According to Fino Payments Bank, Gupta's arrest is linked to business partners' activities rather than its own GST compliance, and the bank has assured its complete cooperation with authorities. The incident has prompted discussion within the financial sector about the stringent nature of current GST laws.

(With inputs from agencies.)