Compliance challenges at Fino Payments Bank.
Fino Payments Bank’s chief compliance officer, Aashish Pathak, has resigned, adding to a period of leadership instability. Pathak, who also served as principal officer and principal node officer, cited personal reasons for his departure, according to a regulatory filing by the bank on March 13. His last day was today.
Pathak joined Fino as senior vice president in 2023 after nearly five years at ORIX Auto Infrastructure Services, overseeing compliance and regulatory functions. His exit occurs during a leadership crisis and increased regulatory oversight for the payments bank.
Last month, the Directorate General of GST Intelligence (DGGI) in Hyderabad arrested MD and CEO Rishi Gupta concerning an alleged ₹840 Cr GST evasion case linked to online betting platforms. Gupta was accused of routing funds through shell entities and program managers.
Fino maintains that the probe is unrelated to its GST compliance and asserts a strong compliance framework. Following Gupta’s arrest, CFO Ketan Merchant was appointed as interim CEO, and a committee of senior executives and board members was formed to manage daily operations.
Gupta has since been granted bail, but Fino’s board has postponed his reappointment as CEO, pending a reassessment of his ‘fit and proper’ status and the RBI’s review. The RBI had approved his reappointment in January.
These developments coincide with Fino’s strategic transition to a small finance bank (SFB), for which the RBI granted in-principle approval in December. The bank says it remains focused on this transition despite the disruptions.
Fino Payments Bank’s stock experienced pressure recently, declining 15.81% last week to close at ₹127 and further dropping 7.13% to ₹117.95 on the BSE today.
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