As Pixr8 reported earlier that one of India’s leading mobile wallet company Mobikwik offers 6 per cent annual interest on the account balance to its mobile wallet users. Now a report from livemint says that mobikwik has withdrawn this offer.
All promotional messages regarding the 6% annual profit on Mobikwik’s website have been removed.
The offer was 6 percent annual return to the users who would have to maintain an average of Rs 5,000 or more in their wallets per month.
The RBI said in an email query of Mint, “Mobile wallet companies are not permitted to mobilise funds/deposits by offering cash back in nature of interest etc. To our knowledge the entity (Mobikwik) is no more allowing/offering such product,”.
Earlier this year, MobiKwik had started offering instant micro-loans to wallet users running short on balance as part of its efforts to boost digital payment usage in the country.
The company had recently raised USD 50 million in funding, led by Japanese payments firm Gateway and Taiwanese chip maker MediaTek.
For the annual profit interest rate, the company would have been offering banking-like services. Without having a bank licence no company can offer annual interests rate. Mobikwik had applied for a payments bank licence to the RBI, but was denied one.