The Reserve Bank of India’s (RBI's) stance on small finance bank licensing to fintechs remains the same, said Deputy Governor M Rajeshwar Rao on October 6.
“We have not taken any change as far as fintech is concerned. As far as approval of a banking license or a proposal for voluntary amalgamation, we do carry a fit and proper assessment of things where the financials are involved,” said Rao at the press conference after the MPC meeting.
Also read: RBI holds repo rate at 6.5%, inflation focus continues; FY24 GDP growth forecast unchanged at 6.5%
The comment came in the context of a recent merger between slice and North East SFB.
The merger
Fintech credit and payments startup Slice and Guwahati-based North East Small Finance Bank (NESFB) have announced their intention to merge the two entities.
The banking regulator has given the no-objection certificate (NOC) to the deal and will see Slice becoming an SFB, a first of its kind development in the fintech and banking space.
Bengaluru-based Slice was last valued at around US$ 1.8 billion during its previous fundraising last year. In March 2023, Slice had acquired a 5 percent stake in NESFB for a value of $3.4 million.
Also read: Fintech startup Slice to merge with North East Small Finance Bank
While the shareholding details of the merger arrangement is not known, going by the previous valuation and investment, it is likely that Slice shareholders will own a majority stake in the merged entity.
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