scorecardresearchRBI grants in-principle prepaid payment instrument licence to fintech firm Slice: Report

RBI grants in-principle prepaid payment instrument licence to fintech firm Slice: Report

Updated: 16 Dec 2022, 12:35 PM IST
TL;DR.
Previously, Slice was issuing prepaid cards through a partnership with SBM Bank in India and riding on the latter’s PPI licence.
RBI guidelines currently allow small PPIs or minimum-detail PPIs to load up to  <span class='webrupee'>₹</span>10,000 per month and not exceed  <span class='webrupee'>₹</span>1. 2 lakh during the financial year.

RBI guidelines currently allow small PPIs or minimum-detail PPIs to load up to 10,000 per month and not exceed 1. 2 lakh during the financial year.

Slice, a card-fintech platform, has received an in-principle prepaid payment instrument (PPI) licence from the Reserve Bank of India, The Economic Times reported.

This comes after the fintech firm came under pressure earlier this year after the banking regulator barred prepaid cards from being loaded with credit lines.

According to sources cited by ET, Slice plans to open minimum know your customer (KYC) PPI accounts for teenagers as it looks to widen its user base and target a newer cohort of users.

RBI guidelines currently allow small PPIs or minimum-detail PPIs to load up to 10,000 per month and not exceed 1. 2 lakh during a financial year.

Slice would tap the teenager segment with these small PPI accounts, said the report.

“This will be via minimum KYC which will allow these users to spend up to 10,000 a month as per banking rules. That’s also typically the amount they spend in a month,” a source was quoted as saying by ET.

The licence is also in line to double down on offerings for its waitlisted customers. Previously, Slice was issuing prepaid cards through a partnership with SBM Bank in India and riding on the latter’s PPI licence.

Small PPIs allow only purchase of goods and services, with cash withdrawal and funds transfer not permitted, as per the rules set by the central bank.

In May, Slice said that it was adding the Unified Payments Interface (UPI) offering to its product portfolio, as it looked to cater to waitlisted customers through newer products.

First Published: 16 Dec 2022, 11:10 AM IST