The decision came on the recommendation of the bank’s Nomination & Remuneration Committee. Merchant has held the interim position since February 27. The board’s approval is therefore one step in the process, with the RBI’s decision still awaited.

Merchant joined Fino in 2018 and helped steer its stock-market listing in 2021. He now leads the bank’s Fino 2.0 plan, built around the DDD approach: Data, Distribution and Digital. The strategy is aimed at supporting growth and widening the bank’s presence across India.

The leadership transition also involves former managing director and CEO Rishi Gupta. Following reports concerning an investigation by the Directorate General of GST Intelligence, Fino obtained several legal opinions. After examining the documents, the board said it found no initial basis for a case against Gupta and considered him suitable to remain in office.

Gupta nevertheless requested voluntary early retirement on May 21, 2026, and the board accepted it. Fino described his departure as a personal choice after the legal reviews. The proposed extension would keep Merchant in temporary charge, subject to regulatory approval; no timetable for appointing a permanent CEO has been stated.