Fintech player Slice has received an in-principle nod from the Reserve Bank of India to start issuing prepaid payment instruments on its own, according to two people in the know.
The approval depends on an external audit, which will be ordered by the regulator, the people said on the condition of anonymity. Slice also has to meet certain conditions set by the RBI, they said.
For now, Slice has chosen to not restart its prepaid card product which was suspended earlier this year owing to the RBI’s strictures around prepaid cards. The fintech continues to offer a payment wallet in association with State Bank of Mauritius India.
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…”
According to data available with the RBI, 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.