Slice temporarily deactivates users’ credit cards to adhere to RBI’s digital lending rules

With a view to adhere to the Reserve Bank of India’s new pointers on digital lending, fintech startup Slice has communicated to clients that it might cease operation of its playing cards briefly subsequent month, because it transitions to a brand new system.

Slice has requested customers to open a pay as you go account that will probably be linked to its playing cards.

The nation’s banking regulator had introduced
new rules on August 10 for third-party platforms , akin to pay as you go cost devices (PPIs) like wallets and playing cards which subject credit score merchandise. It has set November 30 because the deadline for the platforms to stick to the brand new pointers.

“To make sure a easy transition, we’ll briefly block your card throughout November. We are going to notify you upfront within the Slice app after we improve you to the all-new expertise earlier than November finish,” Slice wrote in an electronic mail to its clients.

It mentioned clients would have the ability to open a Slice mini pay as you go account, the place they may add and withdraw cash. This could additionally allow the platform’s lending companions to increase loans into this pay as you go account.

Slice, backed by Tiger World, will not be the primary firm to deactivate bank cards. In August, fintech startup Uni, which provides buy-now-pay-later options, briefly stopped servicing its present card customers.

Slice additionally knowledgeable customers about Slice Borrow — a characteristic by means of which customers can entry loans. “Simply enter the quantity and a few clicks later…the cash is in your account. The quantity you’ll be able to borrow is determined by your buy energy. A flat charge will probably be charged for every borrowing. You may pay in 1 month with 0 curiosity, or break up your reimbursement as much as 12 months with curiosity,” it mentioned.

In July, ETtech reported that Slice’s had been placed on maintain
ongoing fundraising following the RBI‘s June round barring PPIs from loading credit score traces.

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