Fino Payments Bank has announced that its Board of Directors has approved a tenure extension for Ketan Merchant. He will continue as the interim Chief Executive Officer (interim CEO means a temporary head until a permanent one is found). The extension is for a period not exceeding three months, starting from August 27. This decision follows a recommendation from the bank's Nomination & Remuneration Committee.

While the board has given its nod, the final decision rests with the Reserve Bank of India (RBI). In the Indian banking sector, all top-level appointments and extensions must be cleared by the RBI to ensure stable leadership. Merchant has been serving in this temporary role since February 27 and has a long history with the bank, having joined back in 2018.

Ketan Merchant is credited with several major milestones at Fino. He played a vital role during the bank’s listing on the stock market in 2021. Currently, he is leading the 'Fino 2.0' vision. This vision relies on a three-pronged strategy known as 'DDD,' which stands for Data, Distribution, and Digital. His focus remains on accelerating growth-oriented strategies to expand the bank’s reach across India.

The leadership change originally began due to a transition involving the former MD & CEO, Rishi Gupta. Earlier this year, investigation reports were discussed regarding a probe by the Directorate General of GST Intelligence. The bank sought multiple legal opinions to check if there were any issues. After reviewing the documents, the Board concluded that there was no prima facie case (a case based on first impression) against Gupta.

Despite the Board declaring him 'fit and proper' to continue his duties, Rishi Gupta chose to step down. He submitted a request for voluntary early retirement on May 21, 2026. The Board accepted his request, leading to the need for interim leadership to maintain steady operations at the bank. The bank has clarified that Gupta’s exit was his own choice following the legal reviews.

For bank officers and aspirants, this news highlights how critical 'Fit and Proper' criteria are in Indian banking. Even when a board supports a leader, regulatory filings and central bank approvals are mandatory steps. The extension of Merchant ensures that the bank does not face a leadership vacuum while it handles its growth plans.

Looking ahead, the industry will watch for the RBI's formal approval of this extension. Bankers should also keep an eye on whether Fino announces a permanent CEO soon or if Merchant continues his streak. The success of the 'DDD' strategy will be a key performance indicator (KPI) for the bank in the coming quarters as they compete in the crowded payments bank space.