Fintech Unicorn Slice gets RBI nod for PPI Licence
The Unicorn Fintech Slice has received a green flag from RBI to issue PPI( Prepaid Pay Licence). The sources informed that Slice is looking to offer minimum know your customer (KYC) PPI accounts to teenage kids, in an attempt to expand its user base and target a new set of prospective customers. It was earlier planning to onboard nearly 20% of its user base but after receiving the PPI license, it is likely to onboard more customers.
The fintech startup will promote this new user base (of teenagers) to spend up to INR 10K every month, adhering to the RBI’s guidelines that allows small PPI players to load up to INR 10,000 per month and not more than INR 1.2 Lakh within a fiscal year. A spokesperson for Slice declined to comment. Queries emailed to the RBI on Friday remained unanswered. Slice is one of the few fintech firms impacted by the RBI’s norms on adding funds to a prepaid account.
The regulator’s master directions said that PPI issuers may allow loading or reloading of prepaid instruments by “cash, debit to a bank account, credit and debit cards, prepaid instruments (as permitted from time to time) and other prepaid instruments issued by regulated entities…”. As of now, there are 37 non-bank PPI issuers in the market. These include Amazon Pay, Bajaj Finance, Ebix Payment Services, Manappuram Finance, Ola Financial Services, and One Mobikwik.
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