MobiKwik Xtra, a P2P lending product, faces FIRs from 630 investors alleging ₹6 crore in blocked funds. This puts MobiKwik directly against RBI's NBFC-P2P guidelines prohibiting platforms from guaranteeing fixed returns or liquidity. The allegations of diverted funds and blocked withdrawals raise questions about the RBI's oversight.
How We Got Here
RBI guidelines for NBFC-P2P platforms clearly state these entities cannot promote lending as investment products with assured returns or easy withdrawals. The Digital Personal Data Protection Act, 2023, also mandates specific, informed consent for fund diversion.
The Numbers
- Investor Arjeet Singh Benchhor filed an FIR in Bengaluru on May 14, alleging ₹4 lakh stuck and funds diverted without consent.
- The FIRs list multiple offences under the IT Act, 2000, and the new Bharatiya Nyaya Sanhita, 2023, including cheating.
- MobiKwik's P2P lending partner, Lendbox, is also named in the FIRs for promoting the scheme and diverting funds.
- MobiKwik Xtra's official website still advertises 10-14% annual returns, offering up to ₹14,000 for every ₹1 lakh invested.
- A Borrower Mapping report dated May 5 cited inactive or defaulted borrower accounts linked to the MobiKwik Xtra scheme.
What Happens Next
🇮🇳 Why This Matters for India
For fintech founders building P2P lending products in Hyderabad or Pune, this incident highlights the significant regulatory and reputational risks of perceived deposit-taking.
The Take
MobiKwik's alleged fraud highlights the RBI's prolonged silence despite clear P2P advertising guideline breaches since 2017. Expect stricter enforcement on P2P platforms advertising 'fixed returns' within the next six months.
Source:
MediaNama ↗