Why MobiKwik has discontinued instant withdrawals in P2P lending
MobiKwik Xtra, a peer-to-peer (P2P) lending investment product, has suspended its 'anytime withdrawal' feature. This decision follows the Reserve Bank of India's (RBI) recent tightening of regulations for P2P lending platforms. The central bank has set a cap on total investments at ₹50 lakh in a single P2P platform and ₹50,000 for an individual borrower among other changes.
User complaints prompt MobiKwik Xtra's response
Several users have voiced their concerns on social media about withdrawal issues from the MobiKwik Xtra platform. They also claimed that their investments were being redirected to other borrowers without their consent. These complaints come despite recent RBI regulations on P2P not directly affecting existing investments. In response, MobiKwik stated that the changes were implemented by its NBFC-P2P partner Lendbox following recent regulatory clarifications.
MobiKwik Xtra clarifies changes in product features
In a FAQ published on its website, MobiKwik Xtra clarified that "based on recent regulatory clarifications, certain features of the product have been specifically disallowed effective immediately including anytime/flexible withdrawal facility." The company further stated that all repayments will now be directly credited to lenders as and when borrowers make their payments. This change applies to both existing and new Xtra investments.
New withdrawal process and timeline explained
MobiKwik Xtra has outlined a new withdrawal process for its users. "As and when borrowers repay, funds will be available for withdrawal to your bank account with applicable principal and interest components, monthly on the 12th of each month." The company also assured users that a repayment schedule and borrower list will soon be provided on the app for easy tracking of funds.
