India, Feb. 28 -- Rishi Gupta, the chief executive officer of Fino Payments Bank Ltd., has been arrested in connection with an investigation into GST violations.

The arrest, executed on 27 February under Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Act, 2017, pertains to an investigation involving Fino Payments Bank's business partners rather than its own compliance, the lender said in a regulatory filing.

In an emergency board meeting concluded late Friday, the bank appointed Chief Financial Officer Ketan Merchant as "Head of the Organisation" to oversee day-to-day operations. The board stated Merchant will remain in the role until Gupta resumes office or further resolutions are made.

Fino sought to reassure investors, statin...