Fino Payments Bank Compliance Head Resigns Amid Turmoil
Fino Payments Bank’s Compliance Officer Resigns Amidst Leadership Instability
Key Highlights
Fino Payments Bank’s Chief Compliance Officer, Aashish Pathak, resigns citing personal reasons amidst leadership changes and increased regulatory scrutiny. Read more.
Aashish Pathak, the chief compliance officer (CCO), principal officer, and principal node officer at Fino Payments Bank, has resigned. The resignation comes during a period of leadership instability for the bank.
In a regulatory filing, Fino Payments Bank stated that Pathak tendered his resignation on March 13, citing personal reasons. His last day of work was today. Pathak was a member of the senior management team, overseeing compliance and regulatory functions. He joined Fino as senior vice president in 2023, following nearly five years at ORIX Auto Infrastructure Services.
Pathak’s departure occurs as the payments bank navigates a leadership crisis and increased regulatory scrutiny. Last month, the Hyderabad unit of the Directorate General of GST Intelligence (DGGI) arrested MD and CEO Rishi Gupta in connection with an alleged ₹840 Cr GST evasion case linked to online betting platforms. The agency alleged Gupta was part of a syndicate that channeled funds through shell entities and program managers.
Fino Payments Bank maintains that the investigation is unrelated to the bank’s GST compliance. The bank asserts that it has a strong compliance framework in place. In a statement following Gupta’s arrest, the bank stated, “The Bank wishes to inform that we have strong corporate governance, compliance framework and robust processes in place. As a regulated entity, we are compliant with all the laws, including GST.”
Following the arrest, the bank appointed its CFO, Ketan Merchant, as interim CEO and formed a committee of senior executives and board members to manage daily operations.
Gupta has since been granted bail by the court. However, Fino’s board has postponed seeking Gupta’s reappointment as CEO. The bank stated it would revisit the decision after its nomination and remuneration committee reassesses Gupta’s ‘fit and proper’ status and after the RBI reviews the matter.
Notably, the RBI had approved Gupta’s reappointment as recently as January.
These developments occur as Fino is undergoing a strategic transition. In December, the RBI granted in-principle approval for the payments bank to convert into a small finance bank (SFB). The bank has stated it remains focused on this transition despite the current disruptions.
On the market front, Fino Payments Bank’s stock experienced significant pressure last week, emerging as the worst performer among new-age tech stocks. Shares fell 15.81% over the week, closing at ₹127. They further declined 7.13% today on , reaching ₹117.95.
