Fintech unicorn Slice has received in-principle approval for a prepaid payment instrument (PPI) licence from the Reserve Bank of India (RBI). The product is not live yet.
The fintech company is now reportedly looking to offer PPI accounts with minimum know-your-customer (KYC) requirements to teenagers to expand its user base. It is said that this will be via minimum KYC, which will allow these users to spend up to Rs 10,000 a month as per banking rules.
After the RBI mandated that the flow of funds should be only between the customer’s and lender’s bank accounts, the company was issuing prepaid cards through a partnership with SBM Bank. The regulator had barred PPI instruments, including prepaid cards and wallets, from being loaded with credit lines. It halted operation temporarily after the RBI circular.
RBI guidelines allow small PPIs or minimum-detail PPIs to load up to Rs 10,000 per month and not exceed Rs 1.2 lakh during the financial year. In May this year, 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.
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