MobiKwik Scraps 6% Annual Profit Scheme
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Mobikwik scraps 6 annual profit scheme

MobiKwik Scraps 6% Annual Profit Scheme

Mobile wallet MobiKwik has scrapped a scheme that promised a

so-called annual profit to its users after regulatory intervention,

less than a week after announcing the offer.

Gurgaon-based One MobiKwik Systems Pvt Ltd had only last

week announced a plan to offer 6% annual profit to users who

maintained a monthly balance of at least Rs 5,000 in their

mobile wallets.

The company termed the payout “profit” instead of interest to

avoid falling foul of the Reserve Bank of India’s (RBI)

regulations that bar wallet companies from taking on deposits

and offering a fixed payment in return.

But a spokesperson for the RBI said in a response to a VCCircle

query on Tuesday that the company is no longer offering the


Mobikwik scraps 6 annual profit scheme

“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,” the spokesperson said in an


The digital wallet company has also removed all messages

regarding the 6% annual profit from its website. But it indicated

that it could relaunch the offer after resolving regulatory


Bipin Preet Singh, co-founder and CEO, MobiKwik, said the

profit cashback offer was part of incentives to reward existing

users and encourage more users to sign up. “There were certain

concerns on the language of the campaign that were flagged to

us and we are working with the regulators in resolving these

concerns so we can continue with the offer,” he said.

The digital wallet company has also removed all messages

regarding the 6% annual profit from its website. It didn’t

respond to an email seeking comment.

The company has about 30 million wallet users and has

previously said that it aims to increase this to 70 million users by

the end of 2017.

While launching the scheme last week, MobiKwik had said that

it was “poised to become a digital bank” and that it aimed to

cater to the financial needs of its wallet users with micro loans,

profit on wallet balance and cashless transactions.

Mobikwik scraps 6 annual profit scheme

“This is the first time in India that users can get higher profits

than institutional savings on their mobile wallet balance,” it said

at the time.

The 6% annual profit was seen as MobiKwik’s reaction to rival

Paytm’s announcement on giving higher interest through its

payments bank.

MobiKwik had last year missed the bus to get approval for a

payments bank. If the annual profit scheme had been approved,

MobiKwik would have offered banking-like services without

having banking or a payments bank licence. Most banks in India

offer 4% interest on savings accounts; private-sector lenders

YES Bank and Kotak Mahindra Bank are among the handful

that gives up to 6% on deposits above a minimum threshold.



Mobikwik scraps 6 annual profit scheme

Contact Us profits

One MobiKwik Systems Private Limited

Address: 2nd Floor, Orchid Centre Golf Course Road, Sector

53 Gurgaon, Haryana 122002. India

Help Line Numbers: (094)-6644-6644, (093)-1392-5342

Operational hours: 08:00 AM to 10:00 PM on all days

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