Fino Payments Bank Ltd., interim CEO (Chief Executive Officer) Ketan Merchant received a three-month extension from the RBI (Reserve Bank of India) for a period of three months, according to an exchange filing from the company.
This development comes after the company announced that it accepted the early retirement request of Managing Director and Chief Executive Officer Rishi Gupta, on May 21.
Gupta was arrested on February 27 under the CGST, SGST act. The information was disclosed by the bank in exchange filing under regulation 30 of the SEBI listing regulations.
The bank said that the investigation relates to business partners of the bank and not related to the GST compliance. It added that it is actively taking appropriate measures to address and overcome the situation.
The company stated that Gupta will cease to be the MD and CEO of the bank, while adding that an internal review did not indicate any prima facie case against him.
To ensure leadership continuity during the transition period, the bank had approved a three-month extension for Interim Chief Executive Officer Ketan Merchant. The tenure of Interim Chief Financial Officer Anup Agarwal had also been extended by another three months.
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The lender stated that none of the bank's officials are involved and officials of the Bank are cooperating with the investigation.
"The matter remains under review. Any further material development in this regard will be disclosed in due course."
The lender received 'in-principle' approval from the Reserve Bank of India to transition into a small finance bank in December 2025.
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