Empty office corridor with a packed box and briefcase outside a glass office door.
Rishi Gupta has resigned as the Managing Director (MD) and Chief Executive Officer (CEO) of Fino Payments Bank, a move that comes as the company faces scrutiny from the Directorate General GST Intelligence (DGGI). The resignation was accepted by the bank’s board, which noted that Gupta had been found ‘fit and proper’ to continue in his role despite the ongoing investigation.
The board has approved the extension of Ketan Merchant’s tenure as interim CEO for three months, pending Reserve Bank of India (RBI) approval. Anup Agarwal’s tenure as interim Chief Financial Officer (CFO) has also been extended until July 2026.
Gupta, who has been with Fino for two decades, cited a desire to explore new avenues as his reason for stepping down. In his resignation letter, he expressed his wish for the bank’s continued success and offered his availability to ensure a smooth transition.
The DGGI initiated a probe into Gupta following his arrest in February concerning allegations of involvement in a syndicate suspected of channeling funds from illegal online gaming platforms through shell entities. Fino Payments Bank has maintained that the probe relates to program managers and not the bank’s GST compliance.
Despite the board’s assessment that no prima facie case could be made out against Gupta, his resignation follows a period of significant market reaction. Fino’s shares have experienced a notable decline, falling approximately 43% in the past three months and over 53% year-to-date.
The company has stated that its operations remain stable and unaffected by these developments and that it continues to work towards operationalizing its small finance bank (SFB) license within the stipulated timelines.
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