Bengaluru police registers cases against MobiKwik, Lendbox over Xtra dispute
25 May 2026, 05:08 PMThe latest police action adds another layer to a dispute that has been simmering since tighter RBI norms reshaped India’s P2P lending landscape in 2024.
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The troubles around MobiKwik Xtra -- a peer-to-peer (P2P) lending product built through a partnership between MobiKwik and Lendbox -- appear far from over.
Bengaluru’s Varthur police has registered cases against Gurgaon-based fintech firms One MobiKwik Systems Ltd and Transactree Technologies Pvt Ltd (Lendbox) following allegations that investor funds were blocked and withdrawals restricted on the MobiKwik Xtra platform, The Indian Express reported. The complaints were filed by investors who alleged they were promised fixed-deposit-like returns and easy liquidity but later found themselves unable to access invested money.
MobiKwik launched MobiKwik Xtra in 2022, positioning it as an investment product offering returns of up to 12% annually by enabling users to lend directly to borrowers through a partnership with Lendbox, an RBI-regulated NBFC-P2P platform. Under the arrangement, MobiKwik acted as the distribution layer, while Lendbox managed lending operations, including borrower assessment and loan infrastructure.
The latest police action adds another layer to a dispute that has been simmering since tighter RBI norms reshaped India’s P2P lending landscape in 2024. Investor concerns intensified after withdrawal mechanisms changed and funds became harder to access, triggering frustration among users and sparking questions around transparency and borrower mapping practices.
Earlier in 2024, The Head and Tale had reported that cracks had emerged in the MobiKwik-Lendbox partnership after regulatory changes hit the sector, with investors caught amid operational shifts and communication gaps. Public statements from both sides had increasingly pointed toward differing interpretations of responsibility around product functioning and investor servicing.
MobiKwik Xtra was not entirely discontinued, but it was heavily modified and its core "anytime withdrawal" feature was suspended in September 2024 following the RBI crackdown.
The Bengaluru complaints now push the matter beyond investor dissatisfaction into legal scrutiny, potentially escalating pressure on both firms as questions around P2P compliance, fund accessibility and accountability continue to build.
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