The Reserve Bank of India (RBI) has directed Bank of Baroda (BoB) to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application.
The central bank said this action (taken in exercise of its power under Section 35A of the Banking Regulation Act, 1949) is based on certain material supervisory concerns observed in the manner of onboarding their customers onto “bob World”.
“Any further onboarding of customers of the bank on the “bob World” application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI,” per a central bank statement.
The bank has been further directed to ensure that already onboarded “bob world” customers do not face any disruption on account of this suspension.
Meanwhile, BoB, in a statement, said it has already carried out corrective measures to address the concerns of the RBI.
The Bank has initiated further steps to plug any remaining gaps identified and will work closely with the RBI to address their concerns at the earliest to their satisfaction, it added.
“We would also like to assure all our existing customers that they will not face any disruption whatsoever…,” the public sector bank said, adding they will continue to get uninterrupted services on the mobile app.
Further, this order does not impact any of the bank’s other digital banking channels such as Net Banking, WhatsApp Banking, Debit Cards, ATMs, etc. for servicing its existing customers as well as for onboarding of new customers, BoB said.
The bank emphasised that its mobile banking app is fully secure with robust security controls and features.
BoB said it does not expect RBI’s action to have a material impact on its overall business and growth plans.