Following the trend of fintechs chasing banking aspirations, credit card and payments startup Slice announced a merger with North East Small Finance Bank (NESFB). The fintech said it has got RBI permission for the merger and is awaiting shareholder approval and other regulatory approvals. Slice, backed by Tiger Global and RTP Global, acquired a 5% interest in Assam-based NESFB for less than Rs 30 crore.

 

Slice, which had been operating as a non-banking financial company (NBFC) for the previous four years, had the option of converting to a bank by applying for a new licence or acquiring one (after reaching the five-year mark as an NBFC).

 

In the past, commercial banks such as Kotak Mahindra started out as non-bank finance companies, as per economic times.

 

A new RBI order prohibiting credit lines from being put on prepaid cards has been a major blow for Slice, who is eight years old.

 

“We’re grateful to the RBI for entrusting us with this immense responsibility. At Slice, our unyielding devotion to customers and robust risk management have set us apart. This approach allows us to serve a wider audience, including those often overlooked,” said Rajan Bajaj, founder & chief executive of the fintech.

 

Slice is a major fintech firm focused on India's youth, with the goal of developing a smart, innovative, and transparent platform to rethink the financial experience for millennials and Generation Z.