Fino Payments Bank has successfully completed its Core Banking System migration to Finacle, marking a significant milestone in the bank's digital transformation journey. The strategic initiative involved an investment of approximately ₹200 crore to establish a scalable, modular, and future-ready technology platform supporting the bank's transition to Small Finance Bank status.

Strategic Investment and Implementation

The migration was executed through a carefully phased approach, with temporary moderation in business volumes during implementation to prioritise system stability and data integrity. Despite the scale and complexity involved, the transition was completed within the anticipated timeline, demonstrating strong execution and operational discipline.

Leadership Perspective on Digital Transformation

Ketan Merchant, Interim CEO, commented on the development: "This migration represents a strategic investment of over ₹200 crore in building a robust digital foundation for the future. The new modular architecture allows efficient growth across liabilities, lending, and payments. It also significantly accelerates product launches, strengthening our readiness for the SFB journey."

Vinod Kumar, Chief Information Officer, added: "Finacle CBS delivers a step change in our technology capabilities. Its agile, scalable design enhances transaction throughput, improves system resilience, and shortens time-to-market across UPI, CASA transactions, merchant portal solutions, and upcoming lending platforms, creating a more integrated digital ecosystem."

Enhanced Technology Capabilities

The upgraded architecture introduces a decoupled, modular framework that allows independent scaling of business lines while improving processing efficiency. Key technological enhancements include:

• Enhanced transaction throughput and system resilience
• Shortened time-to-market for new products and services
• Improved integration across merchant platforms
• Support for virtual cards and National Common Mobility Card (NCMC)
• Extended Finacle license for upcoming Loan Management System (LMS)

The bank's 'Hollow the Core' (HTC) initiative further strengthens the architecture by offloading high-frequency transactions from the core system, improving performance and reducing failure rates.

Business Performance and Market Position

Fino Payments Bank processed ₹3.60 lakh crore in transactions, representing an 8.00% year-over-year increase, with 55.00% digital throughput. The bank operates as a technology-led, asset-light digital bank serving emerging India, backed by marquee investors including ICICI Group, BPCL, Blackstone, LIC, and IFC.

Small Finance Bank Transition

The bank received 'In-principle' approval from RBI to convert into a Small Finance Bank, making it the first Payments Bank to achieve this distinction. The Finacle CBS migration positions the bank strategically for this transition, providing the technological foundation necessary for expanded banking services and enhanced financial inclusion capabilities.

Fino Payments Bank Limited has notified stock exchanges about the extended unavailability of its Managing Director & Chief Executive Officer, Rishi Gupta, who has been unable to perform his regular duties for more than 45 days due to ongoing regulatory procedures.

Regulatory Compliance and Leadership Status

In a disclosure dated April 13, 2026, the bank informed BSE Limited and National Stock Exchange of India Limited that Mr. Gupta's unavailability stems from a pending re-assessment of his fit and proper status. This notification was made pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Previous Disclosures and Timeline

The current disclosure follows earlier communications from the bank dated February 27, 2026, March 07, 2026, and March 26, 2026. According to the bank's previous disclosure on March 07, 2026, Mr. Gupta will resume his position as MD & CEO following the completion of the re-assessment process by the bank's Nomination and Remuneration Committee and Board of Directors, subject to the Reserve Bank of India's view on the matter.

Operational Continuity and Performance

Despite the leadership transition, Fino Payments Bank emphasized that its operations remain stable and uninterrupted. The bank continues to serve its customers and stakeholders in the normal course of business under the interim CEO arrangement approved by the RBI.

Recent Business Achievements

The bank highlighted several positive developments that demonstrate its operational strength:

• Record Deposits: Achieved highest-ever deposit balance during March 2026
• Lending Growth: Witnessed strong momentum in referral lending business
• Market Position: Reinforced strong fundamentals for next phase of growth

These achievements were previously disclosed in communications dated March 14, 2026, March 25, 2026, and April 06, 2026, indicating sustained business performance during the interim period.

Regulatory Framework and Transparency

The disclosure demonstrates the bank's commitment to regulatory compliance and transparency with stakeholders. The notification was signed by Basavraj Loni, Company Secretary & Compliance Officer, and has been made available on the bank's official website at www.fino.bank.in for public access.

The bank's proactive communication approach ensures that investors and stakeholders remain informed about significant developments while maintaining confidence in the institution's operational stability and growth trajectory.