Mobikwik Xtra users hit withdrawal snags as new RBI rules trigger changes
Mobikwik stated that its NBFC-P2P partner, Lendbox, has restructured the Xtra product, resulting in the suspension of anytime withdrawals and other changes.
Investors in MobiKwik's P2P lending product, Xtra, are facing difficulties withdrawing funds as the platform restructures its offerings following new RBI regulations.
The updates, driven by MobiKwik's NBFC-P2P partner Lendbox, have halted anytime withdrawals, leaving users frustrated and seeking clarity on their funds.
MobiKwik stated that its NBFC-P2P partner, Lendbox, has restructured the Xtra product, resulting in the suspension of anytime withdrawals and other changes in response to the revised P2P NBFC master directions issued by the Reserve Bank of India on August 16, 2024. However, several users have claimed that their due amounts were reinvested and transferred to new users without their consent.
"We have made certain changes to Xtra (on the app) as per Lendbox requirements. The changes implemented have been duly communicated to all existing customers and we also continue to address queries received in this regard. We have also provided detailed FAQs to our customers and are available for our customers at all times," Mobikwik said in a statement.
"Customers will receive principal and interest, as repayments are made by the mapped borrowers. This amount will be available for withdrawal on the 12th of every month. They will be able to see the expected repayment schedule on the MobiKwik app in the next few days," The statement added.
MobiKwik did not address allegations regarding payments being reinvested without user consent.
This withdrawal freeze comes in light of the RBI tightening rules around fund transfers on peer-to-peer lending platforms, requiring all transactions to go through escrow accounts managed by a bank-promoted trustee and be transferred within a day.
Other P2P players like IndiaP2P, Cashe-backed 13Karat, have also halted bulk withdrawals and paused onboarding new customers or investments, as reported by Moneycontrol.
These changes aim to prevent misuse of funds and maintain a clear separation between platforms and financial transactions.
The revised regulatory framework for non-banking financial companies facilitating P2P lending (NBFC-P2P) also prohibits platforms from assuming any credit risk, placing the entire burden of potential losses on lenders.
Stricter disclosure requirements now mandate that platforms reveal not only the performance of their loan portfolios but also specific losses incurred by lenders, enhancing transparency.
Edited by Affirunisa Kankudti