Attention P2P Investors and Fintech Enthusiasts!
Recent updates from the Reserve Bank of India (RBI) regarding peer-to-peer (P2P) lending guidelines have started to ripple through the fintech sector, leading to significant changes and concerns among investors. Here’s a rundown of the latest developments:
Impact of New RBI Guidelines:
- Regulatory Update: The RBI’s updated NBFC-P2P master directions issued on August 16, 2024, are reshaping how P2P platforms operate.
- Changes in Services: Many fintech applications using the P2P model are either halting services or restructuring their products to comply with the new regulations.
Key Changes from Notable Platforms:
- MobiKwik’s ‘Xtra’:
- Service Disruption: MobiKwik has stopped instant withdrawals for investors on its P2P investment platform ‘Xtra’. This platform partners with Lendbox, an RBI-registered P2P entity.
- Impact: Investors can now only access their principal amount on the 12th of each month, depending on borrower repayments.
- Cred’s Mint Platform:
- Deposit Halt: Fresh deposits on Cred’s Mint P2P platform, which partners with Liquiloans, have been suspended. This halt followed increased regulatory scrutiny earlier this year.
Investor Reactions:
- Social Media Outcry: Investors are expressing frustration on platforms like ‘X’ and Reddit. One Reddit user highlighted concerns about the inability to withdraw funds freely and the reliance on timely borrower repayments.
Response from MobiKwik:
- Official Statement: MobiKwik confirmed that changes to the ‘Xtra’ platform were made in accordance with the new RBI guidelines and noted the restructuring of their product to align with the updated regulations.