Fino Payments Bank announced significant interim leadership changes following its Board of Directors meeting held on March 06, 2026. The board approved key managerial appointments to ensure continuity in the bank's operations during a transitional period.

Key Leadership Appointments

The board made two critical appointments to fill key managerial positions:

Interim CEO Appointment

Mr. Ketan Merchant has been appointed as Interim Chief Executive Officer to carry out duties of MD&CEO as per provisions of Section 10B(9) of the Banking Regulation Act, 1949. His appointment is subject to approval from the Reserve Bank of India and represents a re-designation from his current role as Chief Financial Officer and Head of the Organisation. The appointment was made pursuant to recommendations from the bank's Nomination and Remuneration Committee.

Interim CFO Appointment

Mr. Anup Agarwal was appointed as Interim Chief Financial Officer, effective immediately from March 06, 2026. His appointment, also for a period not exceeding 4 months, was recommended by both the Nomination and Remuneration Committee and Audit Committee of the bank.

Professional Background

Mr. Ketan Merchant

Mr. Merchant brings extensive banking experience to his new role:

Mr. Anup Agarwal

Mr. Agarwal's professional credentials include:

Additional Board Decisions

The board also approved the appointment of a special consultant to conduct a special review of GST compliances and other aspects based on the approved scope of work, following recommendations from the Audit Committee.

Meeting Details

The board meeting commenced at 05:27 p.m. (IST) and concluded at 07:20 p.m. (IST) on March 06, 2026. All decisions were made in compliance with Regulation 30 of the SEBI Listing Regulations, with detailed disclosures provided to both BSE Limited and National Stock Exchange of India Limited.

Fino Payments Bank conducted a comprehensive business update call on March 2, 2026, to address stakeholder concerns following the arrest of Managing Director and CEO Rishi Gupta in connection with a GST investigation. The call, hosted by Go India Advisors and moderated by Sheetal Khanduja, featured CFO Ketan Merchant and Head of Finance Anup Agarwal providing detailed clarifications on the ongoing situation.

Investigation Details and Leadership Response

CFO Ketan Merchant, who has assumed interim leadership as Head of Organization, clarified that the investigation by the Directorate General of GST Intelligence (DGGI) Hyderabad relates to alleged GST evasion by certain program managers associated with multiple banks. The bank emphasized that it has no role in the business operations of the program managers in question and remains fully compliant with all GST regulations.

Business Continuity and Financial Stability

During the call, management provided reassuring operational metrics demonstrating business stability. Customer balances stood at approximately ₹2,250 crores as of February 26, 2026, and have remained intact with daily account openings maintained at around 10,000. The bank's daily throughput continues at ₹1,300 crores per day, consistent with historical averages.

Program Manager Business Model Clarification

Chief Business Officer Shailesh Pandey explained that program managers are payment service providers who identify merchants and refer them to banks for UPI transaction services. These program managers work with multiple banks, with Fino being just one of their banking partners. The three program managers involved in the investigation represent approximately 8-10% of the bank's overall throughput.

Real Money Gaming Business Cessation

Management confirmed that all real money gaming transactions were immediately banned by the bank in August 2025 following government regulations. The third quarter financial results already exclude any revenue from real money gaming activities, with the impact representing approximately 10% of digital payment services revenue during the April-August 2025 period.

Regulatory Engagement and SFB Plans

The bank continues proactive engagement with all regulators including RBI, SEBI, and other authorities. Management confirmed that the Small Finance Bank conversion timeline of 18 months from December 5, 2025, remains unaffected, with no regulatory concerns expressed regarding normal banking operations or the conversion process.

Risk Management and Compliance Framework

Tejas Maniar from the risk management team outlined the bank's robust monitoring controls, including pre-onboarding and post-onboarding checks for all program managers and merchants. The bank maintains strict KYC norms, conducts merchant site visits, and requires program managers to have existing banking relationships with other institutions as a precondition for onboarding.

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