MobiKwik's Xtra Investors faces troubles - Draws criticism from Users
After a crackdown on P2P – Peer-to-peer loaning by the Reserve Bank of India, MobiKwik's Xtra financial backers are confronting issues with withdrawals. The issue seems to have been spurred by the amendment of the withdrawal strategy by the stage's loaning accomplice Lendbox.
The change, in any case, was made with practically no earlier notification, as per a few clients, who featured the issue on X.
Numerous clients on the microblogging platform additionally affirmed that Xtra likewise moved their investment to different borrowers without their insight. This seems peculiar as the new course by the national bank doesn't affect venture made by clients.
As previously stated, the RBI's master directive, which prohibits peer-to-peer lending as an investment product with features such as tenure-linked assured minimum returns and liquidity options, is likely to account for the suspension of anytime withdrawal. MobiKwik's Xtra permits clients to procure up to 14% profit from their venture.
The application professes to have dispensed in excess of 300,000 advances worth Rs 7,373 crore to date. The RBI's master directive says that a lender can't put more than Rs 50 lakh into a peer-to-peer platform, and a single borrower can only put in Rs 50,000. Another peer-to-peer lending platform, BharatPe's 12% Club, saw a number of users highlight the issue with anytime withdrawals on social media (X).
MobikKwik spokesperson says, “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. Note that MobiKwik only acts as a channel partner for Lendbox”.
Further he added, “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”.
ET reported in July that BharatPe has slowed down the process of onboarding new 12% Club customers. A media report likewise said that onboarding by p2p loaning stages has declined by over 90% since the RBI diktat. Stages like Liquiloans have proactively quit onboarding new clients. LenDenClub, Faircent, 13Karat, and CRED Mint are a portion of the main P2P loaning stages in India.
