Xiaomi Closed Financial Services Business In India
Xiaomi, a Chinese smartphone manufacturer, has reportedly shut down its financial operations in the Indian market, albeit the company has not yet verified this. The Mi Pay and Mi Credit applications have been taken down from Xiaomi's App Store and Google Play Store, the report claims. The English technology website TechCrunch provided this information first.
The inception of Mi Pay occurred three years ago. Users could send money and make a variety of payments using the Mi Pay app. The National Payments Corporation of India (NPCI) app list no longer includes the Mi Pay app. Let us inform you that Xiaomi is currently the subject of a tax probe in India.
Commenting on the matter, a Xiaomi India spokesperson said, "We closed Mi Financial Services in March 2022 to focus on other core business services. In a short span of 4 years, we were able to connect and support thousands of customers. We are working with our partners and supporting our consumers throughout this process. We will continue to bring the latest technology and innovation to everyone in the future with our products and services.
Xiaomi's bank accounts in India have been frozen, with assets worth around Rs 5,500 crore. Xiaomi had also approached the Karnataka High Court regarding this matter, but the court refused to hear it. The case against Xiaomi is going on under the Foreign Exchange Management Act (FEMA).
The Chinese smartphone group, which rejects accusations of wrongdoing, claims the measure "essentially halted" operations in its crucial Indian market.
Political tensions that have existed since a border conflict in 2020 have made it difficult for many Chinese businesses to conduct business in India.
In addition to tightening regulations for Chinese businesses investing in India, India has since banned more than 300 popular Chinese apps, including TikTok, citing security concerns.