Kolkata: Fino Payments Bank has decided to keep managing director Rishi Gupta‘s re-appointment on hold till a reassessment on Gupta’s fit and proper criteria in done by RBI.
The bank board on Thursday withdrew the notice seeking shareholders vote on the his re-appointment, the bank said in a stock exchange notice late Thursday night.
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The board said it took the decision after “thoughtful considerations” and “in the interest of due process and sound corporate governance practices”.
Gupta was arrested on February 27 under a goods and services tax provisions related investigation. He was granted bail on Thursday by a Hyderabad court.
“The candidature of Mr Rishi Gupta for his re-appointment as MD & CEO of the bank remains unaffected and is in no manner withdrawn, abandoned or prejudiced by this action,” the bank said in the regulatory filing.
Gupta, a founding member of Fino PayTech, which subsequently transformed into Fino Payments Bank, was re-appointed as the head of organisation in January. This was supposed to come into effect from May 2.
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“The said agenda item shall be submitted for the consideration of the members to seek their approval at an appropriate time, subject to compliance of the provisions of the Companies Act, 2013, SEBI Listing Regulations and RBI guidelines issued in this regard and re-assessment of the fit and proper status of Mr. Rishi Gupta by the NRC and Board and after a view is taken by the RBI in this regard,” the bank said.
