Resignation of Fino Payments Bank CEO Rishi Gupta Amid Legal Scrutiny
Fino Payments bank CEO Rishi Gupta resigns after 'fit and proper' clearance, interim chief extended
Image: The Economic Times
Rishi Gupta has resigned as CEO of Fino Payments Bank despite being cleared as fit to lead for a second term. His resignation follows his arrest in February related to a GST invoice investigation, and Ketan Merchant's interim leadership has been extended for three months pending regulatory approval.
- 01Rishi Gupta's resignation was accepted by the Fino Payments Bank board on Thursday, despite a prior 'fit and proper' clearance for his second term.
- 02Gupta was arrested on February 27 in connection with an investigation into alleged fake GST invoices, leading to a loss of government income.
- 03Ketan Merchant, the bank's chief financial officer, will continue as interim CEO for up to three months, effective May 27, pending regulatory approval.
- 04The board determined on May 21 that no prima facie case could be established against Gupta in relation to the GST investigation.
- 05Anup Agarwal's tenure as interim CFO has been extended for three months starting July 06.
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Rishi Gupta has resigned from his position as CEO of Fino Payments Bank, with the board accepting his request for voluntary early retirement on Thursday. This decision comes despite Gupta being found 'fit and proper' to lead the bank for a second term. His resignation follows his arrest on February 27, 2023, related to an investigation into alleged fake goods and services tax invoices linked to a business partner, which reportedly caused a loss of income for the government. Gupta was granted bail on March 26, but the board had paused his reappointment process pending a reassessment of his role in the GST case. On May 21, the board stated that no prima facie case could be made against him based on the available documents and legal opinions. Concurrently, Ketan Merchant's tenure as interim CEO has been extended for a period not exceeding three months, effective May 27, subject to regulatory approval. Additionally, Anup Agarwal's role as interim CFO has also been extended for three months starting July 06.
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The resignation of Rishi Gupta may lead to shifts in leadership and operational strategies at Fino Payments Bank, potentially affecting stakeholders including employees and customers.
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