RBI Approves Ketan Merchant as Interim CEO of Fino Payments Bank

The Reserve Bank of India (RBI) has approved the appointment of Ketan Merchant as interim CEO of Fino Payments Bank. This appointment approval for a temporary period of three months. The decision was announced on March 6 2026. The decision comes following the arrest of the bank’s Managing Director and CEO Rishi Gupta in a GST related case. Merchant currently serves as the Chief Financial Officer (CFO) of Fino Payments Bank.

Ketan Merchant Interim CEO Appointment

The RBI approval for Ketan Merchant interim CEO appointment will ensures leadership continuity at Fino Payments Bank.

The central bank will allowed Merchant to be serve as interim CEO for three months starting February 27 2026 or until further decisions are made regarding the position of Rishi Gupta. This approval came through an official communication from the RBI to the bank’s board.

The appointment was made after the bank’s board requested Merchant to take charge of day to day operations following Gupta’s arrest. The Nomination and Remuneration Committee (NRC) and the board will review Gupta’s eligibility before a final decision will be taken by the regulator.

Background of Rishi Gupta Case at Fino Payments Bank

The leadership change occurred after Rishi Gupta who was Managing Director and CEO of Fino Payments Bank. Because he was arrested last month in connection with alleged Goods and Services Tax (GST) violations.

Gupta has not yet been granted bail in the case, which prompted the bank to appoint Ketan Merchant as interim CEO to ensure smooth functioning of the institution. The RBI had earlier approved the extension of Gupta’s tenure as MD and CEO for another three years, starting from May 2 2026.

Fino Payments Bank’s Plan to Become a Small Finance Bank

Fino Payments Bank continues its process to transition into a Small Finance Bank (SFB). In the December 2025 the RBI granted in principle approval for the bank to convert into a small finance bank. Fino Payments Bank is currently the first payments bank in India to apply for such a conversion.

This bank has been given 18 months to complete the transition and management has stated that the process remains on track despite the recent developments. According to the bank there has been no indication from the RBI that the approval is at risk.

What Is a Payments Bank?

A Payments Bank is a type of banking institution in India designed to promote financial inclusion. And provide basic banking services to underserved populations.

Payments banks can accept deposits up to a prescribed limit and offer services such as digital payments, remittances and savings accounts. However they are not allowed to issue loans or credit cards. These banks operate under the regulation of the Reserve Bank of India (RBI).

Question

Q. Who has been appointed as interim CEO of Fino Payments Bank in 2026?

A. Rishi Gupta
B. Ketan Merchant
C. Aditya Puri
D. Amitabh Chaudhry