wordpress blog stats
Connect with us

Hi, what are you looking for?

Fintech startup Slice recieves the go-ahead from RBI to merge with North East Finance Bank

Slice becomes the first fintech company to receive RBI’s nod for a small bank.

On October 4, the fintech startup Slice announced that it has received approval from the Reserve Bank of India (RBI) to merge with the North East Small Finance Bank, as reported by TechCrunch. The company stated that this merger will help it reach more customers who lack access to basic banking services. 

This decision comes after Slice ceased issuing credit cards in October 2022 to comply with RBI’s guidelines (which barred pre-payment instruments from offering customers a credit line) for digital lending platforms. Instead of issuing credit cards, it deposits any funds borrowed directly into the users’ bank account (eg. HDFC, ICICI, etc.). 

Why it matters:

This is the first time that a fintech company has been allowed to set up a small finance bank in India. Historically, RBI has not been in favour of fintech companies from setting up banks. In May 2022, the RBI rejected Flipkart co-founder Sachin Bansal-backed company Chaitanya India Fin Credit Private Limited and five others for setting up banks. It said that their applications were not found suitable. 

Similarly, in July this year, the authority rejected another three applications for setting up small finance banks. With all these applications being marked as “not suitable,” one is left to wonder, what did Slice do differently? 

What would this merger mean?

Also read:

Advertisement. Scroll to continue reading.

STAY ON TOP OF TECH NEWS: Our daily newsletter with the top story of the day from MediaNama, delivered to your inbox before 9 AM. Click here to sign up today!


Written By

Free Reads


TRAI first introduced the idea of displaying the caller's name in a consultation paper back in 2022.


As per reports, the Unmanned Aerial Vehicles (UAVs) will be enabled with 5G capability and will be built to function in extreme temperatures and...


One of the X posts on Krutrim that blew up was about the AI model claiming that it was created by OpenAI as opposed...

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...


The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...


Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...


Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...


RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ