According to CNBC TV18, Fino Payments Bank announced on Wednesday, April 15, that it has completed the migration of its core banking system to Finacle, investing approximately ₹200 crore to build a scalable technology backbone. The bank stated that this upgrade marks a key milestone in its digital transformation, enabling faster product launches, improved system resilience, and higher transaction processing capacity across payments and lending businesses. The migration was executed in phases, with a temporary moderation in business volumes during the fourth quarter of fiscal 2026 to ensure system stability and data integrity.
According to a stock exchange filing reported by CNBC TV18, Fino Payments Bank Ltd informed on Monday (April 13) that Managing Director and CEO Rishi Gupta has been unavailable to perform his role in a regular manner for more than 45 days in a rolling 90-day period. The bank stated that this development is linked to a pending reassessment of his 'fit and proper' status, with Gupta expected to resume office after the reassessment by the Nomination and Remuneration Committee and Board of Directors, along with a view from the Reserve Bank of India. During this period, the bank has appointed an interim CEO with RBI approval to oversee operations, with Ketan Merchant, Chief Financial Officer, as Head of the Organisation continuing to oversee day-to-day operations.
As reported by CNBC TV18, the new modular architecture allows independent scaling of business lines and supports upcoming offerings, including lending platforms, virtual cards and the National Common Mobility Card. The Finacle licence will also be extended to the Bank's upcoming Loan Management System (LMS). Interim CEO Ketan Merchant emphasized that this migration represents a strategic investment of over ₹200 crore in building a robust digital foundation for the future, enabling efficient growth across liabilities, lending, and payments.
According to CNBC TV18, the bank processes high-volume, low-cost transactions focused on financial inclusion, handling ₹3.6 lakh crore in transactions in the first nine months of fiscal 2026. The bank recently recorded its highest-ever deposit balance in March 2026 and saw strong momentum in its referral lending business, demonstrating continued operational strength despite the leadership transition. The bank received in-principle approval from the Reserve Bank of India in December 2025 to convert into a small finance bank, with the technology upgrade strengthening its readiness for this transition.
According to CNBC TV18, shares of FINO Payments Bank Ltd ended at ₹134.65, which is 1.84% up for the day on Wednesday, showing positive market response to the technology upgrade announcement. The stock decline reflects investor concerns about the extended leadership unavailability and the ongoing regulatory review process, but the latest developments suggest market confidence in the bank's strategic investments and future readiness for the small finance bank transition.
