Slice has asked users to open a prepaid account that will be linked to its cards.
The country’s banking regulator had announced
new rules on August 10 for third-party platforms , such as prepaid payment instruments (PPIs) like wallets and cards which issue credit products. It has set November 30 as the deadline for the platforms to adhere to the new guidelines.
“To ensure a smooth transition, we will temporarily block your card during November. We will notify you in advance in the Slice app when we upgrade you to the all-new experience before November end,” Slice wrote in an email to its customers.
It said customers would be able to open a Slice mini prepaid account, where they could add and withdraw money. This would also enable the platform’s lending partners to extend loans into this prepaid account.
Slice, backed by Tiger Global, is not the first company to deactivate credit cards. In August, fintech startup Uni, which offers buy-now-pay-later solutions, temporarily stopped servicing its existing card users.
Discover the stories of your interest
Slice also informed users about Slice Borrow — a feature through which users can access loans. “Just enter the amount and a couple of clicks later…the money is in your account. The amount you can borrow depends on your purchase power. A flat fee will be charged for each borrowing. You can pay in 1 month with 0 interest, or split your repayment up to 12 months with interest,” it said.
In July, ETtech reported that Slice’s had been put on hold
ongoing fundraising following the RBI‘s June circular barring PPIs from loading credit lines.
