Credit card and payments unicorn Slice announced that it is merging with North East Small Finance Bank (NESFB), in line with the trend of fintechs seeking to expand into banking.
The fintech stated that it has received approval from the Reserve Bank of India (RBI) for the merger and is currently awaiting shareholder consent and other necessary regulatory approvals.
Slice, which has operated as a non-banking finance company (NBFC) for the past four years, faced two choices. They could either transform themselves into a bank by seeking a new license or acquire one after completing five years as an NBFC.
In the past, commercial banks like Kotak Mahindra began their journey as non-bank finance companies. However, a recent directive from the RBI, which prohibits loading credit lines onto prepaid cards, has posed a significant setback for Slice, an eight-year-old fintech company.
“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 Slice.
