RBI Action On Bank Of Baroda: In July 2023, it was said that Bob World was involved in tampering with customer accounts, which was strongly denied by Bank of Baroda, but now RBI action has been taken against the bank.
RBI Ban BoB World App: Reserve Bank of India-Reserve Bank of India (RBI) has banned Bank of Baroda (BoB) from adding new customers on its mobile app ‘BoB World’. RBI said that this action was taken after some concerns were observed in the way customers were onboarded on the application. This order of RBI has come into effect with immediate effect.
What is the order of RBI
According to the statement issued by RBI, “The Reserve Bank of India, in exercise of its authority, has directed Bank of Baroda to suspend the process of adding more customers on the ‘Bob World’ mobile app with immediate effect. RBI This step has been taken under Section 35A of the Banking Regulation Act, 1949. The statement said, any process of adding customers of the bank on the ‘Bob World’ app will happen only after the bank has rectified the deficiencies found. Bank of Baroda will have to take steps to strengthen the related processes and to the satisfaction of RBI.
What about existing customers of Bank of Baroda?
RBI said that the bank has been asked to ensure that existing ‘Bob World’ customers do not face any problem due to this suspension.
Allegations were made against Bank of Baroda in July 2023
Earlier, in July 2023, media reports said that Bob’s World was involved in tampering with customer accounts. The report alleged that this government lender linked contact details of different people to increase the number of mobile application registrations. However, on this, Bank of Baroda said that the talk of adding unauthorized or non-customer mobile numbers to promote app registration is factually incorrect. Bank of Baroda also said that a single mobile number of any customer cannot be linked to multiple bank accounts with the bank’s mobile application, BoB World.