MobiKwik had last week announced that it will be offering 6% annual profit on wallet balance to its users but the company has apparently withdrawn the scheme, reports Livemint.
The company had said the users needed to maintain an average of Rs. 5000 balance in their wallets per month and that the profits would be credited to the accounts on a monthly basis.
However, the offer was withdrawn and the RBI stated that mobile wallet companies are not permitted to mobilise funds/deposits by offering cash back in nature of interest.
The company's intent to launch the scheme was to foray into the micro credit business and offer banking services. RBI had earlier rejected Mobikwik's application for a payments bank licence.
"We launched the profit cashback offer as part of an overall package of incentives, to reward our existing users and encourage more users to load & therefore transact on MobiKwik. 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." -Bipin Preet Singh, Founder and CEO of MobiKwik.