India, Feb. 27 -- In a major development, Fino Payments Bank's chief executive officer (CEO) Rishi Gupta was arrested today over allegations of tax evasion.

In a filing with the exchanges, the company said that Gupta was arrested under section 132(1)(a) of the Central Goods and Services Tax (CGST) Act and section 132(1) (i) of the state GST Act.

The former pertains to evasion of taxes due to supply of goods or services without issuing an invoice or issuing a false invoice. The latter relates to wrong Input Tax Credit (ITC) utilisation or wrongful refund exceeding Rs.5 Cr. Both are punishable with imprisonment up to five years.

Meanwhile, the payments bank's board convened a special meeting to appoint chief financial officer (CFO) Ketan...