Mobikwik Xtra Anytime Withdrawal Suspension Affects Investors

Mobikwik Xtra's decision to suspend anytime withdrawals for investors has left many in a lurch. The move has sparked concerns about the safety and liquidity of investments.

Investors who had been relying on the anytime withdrawal feature are now facing uncertainty. They had been expecting to be able to withdraw their funds at any time, but that option is no longer available.

This sudden change in policy has caught many investors off guard. They had been investing in Mobikwik Xtra based on the promise of flexible withdrawals.

The suspension of anytime withdrawals has also raised questions about the company's financial health. Is Mobikwik Xtra facing liquidity issues that have forced this decision?

On a similar theme: What Is Amazon Anytime Pay

Mobikwik Xtra has suspended anytime withdrawals for investors.

This change was made due to new RBI regulations that require P2P lending platforms to restructure their offerings.

The RBI's revised P2P NBFC master directions, issued on August 16, 2024, have led to significant changes in the industry.

MobiKwik stated that its NBFC-P2P partner, Lendbox, has restructured the Xtra product, resulting in the suspension of anytime withdrawals and other changes.

Users will still receive their principal and interest payments as borrowers make repayments, which will be available for withdrawal on the 12th of every month.

The updated repayment schedule will be visible on the MobiKwik app in the coming days.

Several users have reported facing withdrawal challenges from the MobiKwik Xtra platform, with some claiming their investments were transferred to other borrowers without their consent.

The RBI's crackdown on peer-to-peer lending platforms has led to significant changes in the industry, including the prohibition of P2P lending products from offering features like guaranteed returns based on tenure or liquidity options.

MobiKwik Xtra is a peer-to-peer lending investment product that claims customers can earn up to 14% interest per annum.

Suggestion: Mobikwik Mobile App

MobiKwik Xtra suspended anytime withdrawals following RBI's recent directions on P2P lending.

The RBI's crackdown on P2P lending platforms has led to significant changes in the industry. The new RBI master directions, effective from August 16, 2024, prohibit P2P lending platforms from offering products with tenure-linked assured minimum returns and immediate liquidity options.

MobiKwik's Xtra platform was previously offering high returns of up to 14% on investments, but this is no longer possible due to the RBI regulations. The platform's spokesperson explained that the changes, including the suspension of anytime withdrawals, were necessary due to the new RBI regulations.

Users will still receive their principal and interest payments as borrowers make repayments, which will be available for withdrawal on the 12th of each month. The updated repayment schedule will be visible on the MobiKwik app in the coming days.

MobiKwik Xtra is not alone in facing challenges, as BharatPe's 12% Club has also faced user backlash and slowed onboarding processes following similar regulatory changes. Reports indicate that onboarding by P2P lending platforms has dropped by over 90% since the RBI's new directives.

The RBI's revised guidelines now prohibit P2P lending products from offering features like guaranteed returns based on tenure or liquidity options. This has directly impacted platforms like MobiKwik Xtra, which was previously offering high returns on investments.

Investors can expect to receive their principal and interest payments as borrowers make repayments, but will no longer have the option for anytime withdrawals. The withdrawal proceeds will be credited to their bank account in 3 working days of the successful submission of the withdrawal request.

The RBI's new regulations aim to ensure greater transparency and protect investors in the P2P lending industry. As the industry adapts to these changes, users and investors are advised to stay informed about changes in platform policies and regulatory compliance.

MobiKwik Xtra investors are facing difficulties in withdrawing their funds due to RBI's tightened regulations on P2P lending.

The problem started because of a shift in the withdrawal policy by Lendbox, MobiKwik Xtra's lending partner. This policy change was made suddenly, leaving some users without access to their funds.

RBI's directive restricts investment to Rs 50 lakh in a P2P platform, and the maximum investment per borrower is Rs 50,000. This means that lenders are limited in how much they can invest and lend to borrowers.

Additional reading: Private Investor Funds

MobiKwik Xtra allows investors to earn up to 14% on their investments, but the RBI's directive has caused issues with anytime withdrawals. The platform has lent out over 300,000 loans totaling Rs 7,373 crore.

Here are some key facts about RBI's directive on P2P lending:

Several users of BharatPe's P2P lending platform 12% Club have expressed their concerns on social media about the issue with anytime withdrawals.