Resignation of CFO and CEO In January 2025, the bank's Chief Financial Officer (CFO), Gobind Jain, resigned, citing his desire to pursue opportunities outside the organization. Subsequently, the RBI urged CEO Sumant Kathpalia and his deputy to step down as soon as suitable replacements were found and approved by the central bank. These leadership changes were direct consequences of the uncovered accounting discrepancies. RBI Notifications and Changes In April 2024, the RBI implemented new rules for how banks must classify and value these derivative contracts. This forced banks to mark all their gains and losses to market rates every day. It also banned internal hedging contracts — now, if banks wanted to hedge foreign exposure, they would have to go to the markets. Suddenly, banks lost the freedom in how they could recognise their trading profits and losses. IndusInd, like every bank, had to reassess its books under the new framework.