India arrests Fino Payments Bank MD and CEO under GST Act
Day-to-day management authority has shifted to the CFO under a board decision until the CEO resumes office or the board changes the arrangement. The bank stated the investigation relates to its business partner(s) and not to the bank’s GST compliance.
Change
India arrested Rishi Gupta, Managing Director and Chief Executive Officer of Fino Payments Bank, under the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Acts, and the bank's board appointed Chief Financial Officer Ketan Merchant to run day-to-day operations.
Why it matters
Operational and compliance correspondence will need to be routed through alternate authorised signatories, requiring counterparties to verify authority before accepting material instructions. The bank has disclosed the arrest to the Reserve Bank of India (RBI) and says it is cooperating with investigators.
Implications
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