Mobikwik has withdrawn a scheme where it supplied a ‘6% annual earnings’ to customers. image: Priyanka Parashar/Mint
Mumbai: mobile wallets company Mobikwik has withdrawn a scheme in which it presented a “6% annualprofit” to customers who hold a monthly balance of as a minimum Rs.5,000 in their cell wallets.
The company had released the product on 1 June and had termed this as a advertising spin on its cashback schemes. The product, but, turned into very just like hobby paid on a financial savings deposit account, which pockets organizations are not allowed to provide.
Mint had reached out to the Reserve bank of India (RBI) on 2 June, looking for its perspectives at theproduct and whether or not it was authorized. The regulator responded on Monday evening and said the product is no longer being presented.
“cellular wallet businesses aren’t authorised to mobilise budget/deposits by means of imparting coinsreturned in nature of hobby and so on. To our expertise the entity (Mobikwik) is no extraallowing/presenting such product,” the RBI said in an electronic mail reaction to Mint.
“There were positive worries at the language of the marketing campaign that were flagged to us andwe’re running with the regulators in resolving those worries so we are able to retain with the provide,” Bipin Preet Singh, co-founder and CEO, MobiKwik, said in an e-mail reaction.
All promotional messages concerning the 6% annual income on Mobikwik’s internet site had beenremoved.
In February 2012, the RBI cautioned the general public against gold loan lender Mannapuram Finance Ltd, which became accepting deposits from the public without right regulatory approvals. The regulatorsaid that those who persisted to maintain deposits with the NBFC after its warning letter would be doing so at their own threat.
Mobikwik additionally entered the micro credit commercial enterprise final month, by means of offeringsmall loans well worth Rs.500-2,500 to customers who are in pressing want for cash during a transaction and are falling quick. For this it has tied up with a purchaser lending market, CashCare.
If the annual income product had stayed, Mobikwik might had been imparting banking-like offerings,while not having a banking licence. Mobikwik had applied for a bills bank licence to the RBI, but wasdenied one.