Mobile wallet Mobikwik’s cash-back scheme runs afoul of Indian regulators
Mumbai: Mobile wallets company Mobikwik has withdrawn a scheme where it offered a “6% annual profit” to customers who maintain a monthly balance of at least Rs.5,000 in their mobile wallets.
The company had launched the product on 1 June and had termed this as a marketing spin on its cashback schemes. The product, however, was very similar to interest paid on a savings deposit account, which wallet companies are not allowed to offer.
Mint had reached out to the Reserve Bank of India (RBI) on 2 June, seeking its views on the product and whether it was permitted. The regulator responded on Monday evening and said the product is no longer being offered.