Mobikwik Xtra is a peer-to-peer (P2P) lending platform that partners with Lendbox to facilitate P2P lending across the country. However, Mobikwik and similar platforms were somewhat misleading their customers by advertising these platforms as offering a 12% fixed income opportunity with the ability to withdraw money anytime. As a result, the RBI had to step in and introduce a new set of guidelines for such companies and their customers, effective from August 16, 2024.
According to the "Master Direction - Non-Banking Financial Company – Peer to Peer Lending Platform," dated August 16, 2024:
Recently, Mobikwik closed its Flexi and Flexi Plus schemes, which offered a fixed 12% return with interest credited daily, and allowed lenders to withdraw the full or partial amount at any time. These features were against the core principles of P2P lending. In response, Mobikwik shut down the scheme and started partially following the new guidelines.
Why do I say Mobikwik is only partially following the guidelines? Shockingly, Mobikwik & Lendbox redistributed existing lenders' funds to new borrowers without the lenders’ consent. Lenders were not informed about the borrowers’ contact details or credit scores, nor were they given the option to choose borrowers based on their credit profiles—an evident violation of RBI guidelines.
Many lenders have already raised complaints with Mobikwik via phone and email, but according to them, Mobikwik has not resolved the issue. Some lenders have even voiced their concerns on Twitter. I have attached screenshots for your reference.
*These are just a few cases; there are hundreds of complaints available on Twitter.
Mobikwik & Lendbox both should be held accountable for these policy violations and should face action from the RBI.
What can lenders do?
If you’ve already raised the issue with Mobikwik and haven’t received a satisfactory response, I recommend filing a complaint with the RBI. Here’s how you can submit a complaint through the RBI banking ombudsman portal:
Share this post with as many people as possible to bring it to the attention of the relevant authorities, and hopefully, they will take strict action against such companies. I’m also posting this issue on Twitter & YouTube Community Post.
Tweet URL:
According to the "Master Direction - Non-Banking Financial Company – Peer to Peer Lending Platform," dated August 16, 2024:
And
In simple terms, NBFC-P2P platforms will send the borrower's details, such as contact information, credit score, etc., to the lender. Only if the lender approves the borrowing request can the NBFC-P2P proceed with processing the loan.
Recently, Mobikwik closed its Flexi and Flexi Plus schemes, which offered a fixed 12% return with interest credited daily, and allowed lenders to withdraw the full or partial amount at any time. These features were against the core principles of P2P lending. In response, Mobikwik shut down the scheme and started partially following the new guidelines.
Why do I say Mobikwik is only partially following the guidelines? Shockingly, Mobikwik & Lendbox redistributed existing lenders' funds to new borrowers without the lenders’ consent. Lenders were not informed about the borrowers’ contact details or credit scores, nor were they given the option to choose borrowers based on their credit profiles—an evident violation of RBI guidelines.
Many lenders have already raised complaints with Mobikwik via phone and email, but according to them, Mobikwik has not resolved the issue. Some lenders have even voiced their concerns on Twitter. I have attached screenshots for your reference.
*These are just a few cases; there are hundreds of complaints available on Twitter.
Mobikwik & Lendbox both should be held accountable for these policy violations and should face action from the RBI.
What can lenders do?
If you’ve already raised the issue with Mobikwik and haven’t received a satisfactory response, I recommend filing a complaint with the RBI. Here’s how you can submit a complaint through the RBI banking ombudsman portal:
Share this post with as many people as possible to bring it to the attention of the relevant authorities, and hopefully, they will take strict action against such companies. I’m also posting this issue on Twitter & YouTube Community Post.
Tweet URL:
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