RBI has revised its decision to impose restriction on BOB World, allowing it to onboard customers through the app, Bank of Baroda informed stock exchanges on May 8.
The lifting of restriction applies to PSU lender with immediate effect, the bank said.
Back in October 2023, the banking regulator had directed our BoB to suspend further onboarding of customers onto 'Bob World' mobile application, citing 'certain material supervisory concerns' observed in the processes.
Following the RBI direction, the Bank of Baroda had clarified that it has carried out corrective measures to address the concerns highlighted by RBI, and is taking further steps to plug any remaining gaps. The bank has subsequently taken action on the field as well as corporate level, including the resignation of Chief Digital Officer (CDO) Akhil Handa.
In July 2023, media reports had claimed that Bob World was involved in tampering with customer accounts. The reports alleged that the lender linked contact details of different people to increase the number of mobile application registrations.
The Bob World app case: A look timeline and the regulatory action
What is BoB World application?
Bank of Baroda launched its digital banking application 'BoB World' in September 2021. It provides a virtual banking experience and has all its digital banking services under one roof, for its customers.
On October 16, Moneycontrol reported that BOB may soon file a rectification report based on the audit of the BOB World app to the RB in the next two weeks.
"The RBI had suspended new on-boarding of customers to our BOB World," a senior official said. "We are doing a rectification drive and hoping to send a report to the RBI in the next two weeks," the official said on condition of anonymity.
On October 18, Moneycontrol exclusively reported that BoB had suspended over 60 employees, including 11 assistant general managers.
"AGM-level officials are scale V officers who generally hold positions of area managers, zonal heads, and oversee heads at over 25 branches," said a BoB employee.
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