MobiKwik’s Xtra product, launched in 2023, was positioned as a high-yield investment offering returns of up to 14%. The product operated through a partnership with Lendbox, an RBI-registered NBFC-P2P platform.
While MobiKwik acted as a distribution partner, investor funds were managed through the NBFC-P2P platform. At the time of launch, there were no RBI restrictions prohibiting fixed returns or anytime withdrawal features.
Concerns began to emerge when customers reported difficulties withdrawing their funds. To comply with RBI regulatory requirements, Lendbox, the NBFC-P2P partner managing the platform, introduced changes to the withdrawal mechanism.
Subsequently, MobiKwik Xtra suspended its anytime withdrawal feature and informed users that withdrawals would be processed only in accordance with investment maturity timelines due to regulatory requirements.
Some customers also alleged that their investments had been reassigned to other borrowers without their explicit consent.
The backdrop to these developments was the RBI’s tightening of peer-to-peer lending regulations in August 2024. The regulator prohibited several practices within the P2P lending ecosystem, including assured returns, liquidity or anytime withdrawal features, cross-selling of products other than loan-specific insurance, and any form of credit enhancement or guarantee.
Following these regulatory changes, the earlier structure of MobiKwik Xtra could no longer continue. Investor funds were required to be mapped directly to individual borrowers, linking repayments to borrower repayment schedules and maturity timelines rather than providing instant liquidity.
The onboarding of new customers for P2P lending products was subsequently halted. Meanwhile, repayments and recoveries for existing customers have continued, with withdrawals now dependent on underlying borrower repayments and loan maturities.
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Amid rising customer concerns over the MobiKwik Xtra product, the company issued a clarification on May 25, 2026, regarding the repayment and recovery status of funds linked to the platform.
MobiKwik stated: “All repayments will be credited directly to lenders as and when borrowers make their payments.” The company said the repayment process is now linked to actual borrower repayment timelines and collections.
It further clarified that “more than 90% in aggregate has been repaid by borrowers to the respective lenders.” According to the company, the remaining funds are still with borrowers and continue to be processed through the recovery and repayment mechanism.
Despite the challenges surrounding the Xtra product, MobiKwik has continued expanding its financial services ecosystem.
The company recently secured RBI approval for its Offline Payment Aggregator (PA) licence and has set a target of achieving tenfold growth in its merchant business by FY28.
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MobiKwik Group has also received RBI approval for its NBFC application, which is expected to support a faster rollout of credit products and expand customer reach.
Additionally, MobiKwik received approval from the BSE to commence its stockbroking business, enabling activities related to the buying, selling, clearing and settlement of equity trades.
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