SUMMARY
- MobiKwik’s Xtra investors are facing difficulties in withdrawing their funds after RBI tightened its regulations on P2P lending.
- This problem appears to have started because of a shift in the withdrawal policy by the platform’s lending partner, Lendbox.
- RBI’s directive restricts investment to Rs 50 lakh in a P2P platform, and the maximum investment per borrower is Rs 50,000.
After the Reserve Bank of India (RBI) tightened its regulations on peer-to-peer (P2P) lending, MobiKwik Xtra investors are facing difficulties in withdrawing their funds. This problem appears to have started because of a shift in the withdrawal policy by the platform’s lending partner, Lendbox. However, this policy change was made suddenly, as some users have noted on social media.
Users on social media have also shared that Xtra transferred their investments to other borrowers without their permission. This is unusual considering the new policies from the central bank do not impact investments made by users.
The suspension of withdrawals at any time is likely due to the RBI’s directive, which bans p2p lending as an investment product that includes features like term-linked guaranteed minimum returns and options for liquidity.
MobiKwik’s Xtra allows investors to earn up to 14% on their investments. The app has announced that it has lent out over 300,000 loans totaling Rs 7,373 crore.
According to the RBI’s directive, lenders are restricted to investing no more than Rs 50 lakh in a P2P platform, and the maximum investment per borrower is Rs 50,000.
A representative from MobiKwik has said, “Due to the amendment of the P2P NBFC master directions issued by the Reserve Bank of India on August 16, 2024, Lendbox has restructured this product which has resulted in the stoppage of anytime withdrawal among other changes.” It was also mentioned that MobiKwik only serves as a conduit for Lendbox.
Customers will get their principal and interest back as borrowers repay, with the funds available for withdrawal on the 12th of each month. They will also be able to see the repayment schedule on the MobiKwik app in the near future, according to the spokesperson.
Several users of BharatPe’s P2P lending platform 12% Club, have expressed their concerns on social media about the issue with anytime withdrawals. In July, it was reported by ET that BharatPe has slowed down the process of adding new members to the 12% Club.
A news report also mentioned that the number of new members being added to P2P lending platforms has dropped by over 90% since the RBI’s directive. Platforms like Liquiloans have already stopped taking new members. The leading P2P lending platforms in India include LenDenClub, Faircent, 13Karat, and CRED Mint.
