Overview
- MD and CEO Rishi Gupta was arrested on February 27 under Sections 132(1)(a) and 132(1)(i) of the CGST and SGST Acts by the DGGI in Hyderabad.
- In a March 2 filing, the bank denied GST evasion and fake invoicing, said it has paid due taxes on fees, and stated it does not foresee financial liability at this stage.
- CFO Ketan Merchant is serving as interim head for day-to-day operations, and management reports the bank remains operationally stable.
- Customer balances of about Rs 2,250 crore as of February 27 remain intact, with enhanced risk controls including VPA-based monitoring and no current accounts for programme managers.
- Fino continues preparations to convert to a small finance bank within the RBI’s 18-month window and says these plans are unchanged as the case remains sub judice and regulators review details.