Indian fintech startup Slice has completed its merger with North East Small Finance Bank, marking a rare instance of a startup successfully entering India’s tightly regulated banking sector. The merger, first proposed last year, transforms the Bengaluru-based startup into a banking entity, following months of regulatory scrutiny that has reshaped India’s fintech landscape. Slice, which previously gained prominence by issuing credit card-like products, will maintain its existing digital payment and lending services while expanding into traditional banking offerings including savings accounts and investment products, according to an email sent to customers on Sunday. Banking licenses have proved elusive in India, where the central bank has rejected most applications in recent years. The Reserve Bank of India’s wariness stems from its experience with failed banks in the 1990s and governance lapses at Yes Bank and PMC Bank in the past decade. While India has produced dozens of fintech unicorns, most must partner with traditional banks to offer basic services, making them vulnerable to regulatory changes and partner banks’ shifting priorities. This would explain why so many …