The Reserve Bank of India has approved a three-month extension for Interim CEO Ketan Merchant of Fino Payments Bank Ltd., effective May 27, 2026. According to the latest regulatory filing, the RBI approved the extension via a letter dated May 25, 2026, following the bank's earlier communication on May 21, 2026 that it accepted the early retirement request of Managing Director and Chief Executive Officer Rishi Gupta. A special board meeting was convened on May 26 during which the board appointed Merchant as head of the organisation to oversee the bank's day-to-day operations in Gupta's absence.
Gupta took voluntary retirement and resigned on May 21, 2026, following the bank's board decision that he was 'fit and proper' to continue as MD & CEO based on legal opinions. Gupta was arrested on February 27, 2026 under the CGST and SGST Act, 2017, specifically under section 132(1)(a) and 132(1)(i). According to the latest exchange filing, the investigation relates to business partners of the bank and not related to the GST compliance of the bank itself. An internal review conducted by the bank did not indicate any prima facie case against Gupta, and he will cease to be the MD and CEO of the bank. The arrest was made only in respect of Gupta, with the bank clarifying that none of the bank's officials are involved in the investigation.
To maintain operational continuity during the transition, the bank has extended the tenure of Interim Chief Financial Officer Anup Agarwal by another three months. The lender stated that none of the bank's officials are involved in the investigation, and officials are actively cooperating with the ongoing investigation. Merchant assured stakeholders that business operations will continue uninterrupted and there will be no impact on services. The bank emphasized that there is presently no impact on its operations or financials, with any future impact to be disclosed to stock exchanges.
Shares of Fino Payments Bank Ltd closed at ₹128.70, up by ₹3.40, or 2.71% on the BSE on May 26. The bank announced that this development was subject to regulatory approval, which has now been granted by the RBI. Merchant provided comprehensive assurance about the bank's operational stability, stating that the bank has strong corporate governance, compliance framework and robust processes in place. He emphasized that as a regulated entity, the bank is compliant with all laws, including GST, and clarified that the issue relates to a GST investigation pertaining to business partners, with the bank and its MD & CEO having nothing to do with the actions of the business partner(s).
