Fino Payments bank CEO Rishi Gupta resigns after ‘fit and proper’ clearance, interim chief extended

board has accepted Rishi Gupta’s resignation on Thursday even after finding him “fit and proper” to lead the bank as managing director and chief executive officer for a second term.

The bank announced that Gupta tendered his request for voluntary early retirement from the leadership position on Thursday.

Simultaneously, the board approved the extension of interim chief executive Ketan Merchant’s tenure for a period not exceeding three months effective from May 27. This is however subject to regulatory approval.

Merchant, the chief financial officer, was appointed as the interim head after Gupta was arrested on February 27 in an investigation related to alleged fake goods and services tax invoices by a business partner of Fino causing loss of income for the government.

Gupta, one of the founding members of Fino, was subsequently granted bail on March 26.

Before his arrest, the board had approved his extension as the head of the organisation. But the turn of events had forced the board to keep the process of his reappointment on hold till a reassessment on his role on the GST case.

“Based on the consideration of the documents available with the bank as on date, including the legal opinions & reports received and the facts emanated therefrom, the board is of a view that no prima facie case could be made out against Mr Rishi Gupta,” the board said on May 21, even as it promptly accepted Gupta’s resignation.

Meanwhile, the board also extended Anup Agarwal’s tenure for up to three months as an interim CFO with effect from July 06.