Fino Payments Bank CEO Rishi Gupta steps down

The bank announced his resignation on Thursday. The board also said that an initial investigation by the Directorate General of GST Intelligence (DGGI), Hyderabad, did not find any evidence against Gupta.

Gupta’s resignation comes a few months after he was arrested during a probe related to alleged GST evasion connected to the real-money gaming sector.

In a statement quoted in media reports, the bank said its board reviewed documents, legal opinions, and other related reports before deciding that there was no initial evidence (prima facie case) against Rishi Gupta.

“Based on the consideration of the documents available with the Bank as on date, including the legal opinions and reports received and the facts emanated therefrom, the Board is of the view that no prima facie case could be made out against Mr Rishi Gupta,” the company said.

The leadership change comes at an important time for Fino Payments Bank, which recently received initial approval from the Reserve Bank of India (RBI) to become a small finance bank.

This move will help the bank offer more financial services and grow beyond its current payments banking operations.

As part of the transition, the bank’s board extended Ketan Merchant’s role as interim CEO for up to three months starting May 27, pending RBI approval. The board also extended Anup Agarwal’s term as interim Chief Financial Officer (CFO) for up to three months from July 6.

In his letter to the board, Rishi Gupta said he decided to resign because he wants to explore new opportunities outside the bank after spending nearly 20 years with the organisation.

Earlier, Gupta was arrested in connection with an alleged GST evasion case linked to the real-money gaming industry. The case came during a period of stricter government rules and tax investigations into online gaming companies in India. Since August last year, all forms of real-money gaming have been banned in the country.

According to reports, Gupta received bail in March from the Special Judge for Economic Offences Cases in Hyderabad, around a month after his arrest.

Despite the investigation, Fino Payments Bank said Gupta continued to meet the requirements to serve as Managing Director and CEO and described him as “fit and proper” for the role.

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