RBI Approves Merger Of NE Small Finance Bank With Fintech Slice
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00:00 The RBI approved the merger of NorthEast Small Finance Bank with the fintech startup Slice
00:06 on October 4.
00:08 This is a rare approval coming in from the RBI as it has very recently shown reluctance
00:13 in approving NBFC licenses to fintech companies.
00:17 And Slice has borne the brunt of the RBS digital lending guidelines announced last year.
00:23 Slice had to temporarily stop its credit operations linked to prepaid cards.
00:28 They had to even put their fundraising plans on hold.
00:31 Such deals are not common in India's financial landscape.
00:35 Another such entity is Unity Small Finance Bank, but it is partly owned by Bharatpay.
00:41 The fintech firm owns 49% stake in the bank.
00:45 For the NorthEast Small Finance Bank, there is a clear solvency problem at its heart.
00:50 The net worth of the bank declined 75% from last year to nearly Rs 60 crore as of March
00:58 2023.
00:59 This is way below the RBI's minimum requirement of Rs 200 crore for small finance banks.
01:05 While it makes sense for the bank to merge with the fintech firm, we have to see how
01:09 RBI looks at fintechs taking over the ailing small finance banks.
01:14 For more such updates stay tuned to BQ Prime.
01:17 [Music]