The Reserve Bank of India has issued a prepaid payment instrument (PPI) licence to fintech unicorn Slice (RBI).
Now, in an effort to attract a younger demographic, the fintech firm apparently plans to sell PPI accounts to minors with minimal know-your-customer (KYC) standards. According to reports, this may be accomplished with minimal Know Your Customer (KYC) paperwork, allowing customers to withdraw up to Rs 10,000 each month from their bank accounts.
The firm provided prepaid cards via cooperation with SBM Bank before the RBI stipulated that money could only be transferred directly between client and lender bank accounts. Prepaid devices, such as cards & wallets, were prohibited by the regulator from having credit limits added to them. Following the RBI circular, it went on indefinite hold.
Small PPIs, or PPIs with minimal details, are permitted by RBI standards to deposit up to Rs 10,000 a month & not surpass Rs 1.2 lakh in the fiscal year. Slice said in May this year that it would be expanding its product offerings to include a universal payments interface (UPI) in order to serve waitlisted consumers.