RBI directs Bank of Baroda to stop onboarding new customers through BoB World app

Bank of Baroda: The Reserve Bank of India has directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application. This action is based on certain material supervisory concerns observed in the manner of onboarding their customers onto this mobile application. 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. The bank has been further directed to ensure that already onboarded ‘bob World’ customers do not face any disruption on account of this suspension.

The Reserve Bank of India (RBI), on October 10 directed state lender Bank of Baroda to stop onboarding new customers through BoB World, the lender’s digital banking application.

“Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application. This action is based on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application,” the central bank said in a press release.

Following the RBI direction, the Bank of Baroda released a clarification stating it has already carried out corrective measures to address the concerns highlighted by the RBI and is taking further steps to plug any remaining gaps. The statement read: “While the Bank has already carried out corrective measures to address the concerns of the RBI, we have initiated further steps to plug any remaining gaps identified and we will work closely with the RBI to address their concerns at the earliest to their satisfaction.”

RBI also said that any further onboarding of customers of the bank on the application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI.

In the release, RBI said that the customers, who have already been onboarded should not face any disruption.

“The bank has been further directed to ensure that already onboarded ‘bob World’ customers do not face any disruption on account of this suspension,” RBI said.

Also read: RBI imposes monetary penalty on Bank of Baroda, 2 others for rule violation

Earlier, in July 2023, media reports said that Bob World was involved in tampering with customer accounts. The report alleged that the lender linked contact details of different people to increase the number of mobile application registrations.

On this, the lender said that unauthenticated or non-customer mobile numbers for boosting app registrations is factually incorrect.

Also read: One mobile number cannot be linked to multiple mobile banking users, says Bank of Baroda

The lender also said that one mobile number of a customer cannot be linked to multiple accounts with the bank's mobile application, BoB World.

"The point raised on using unauthenticated, stranger’s or non-customer mobile numbers for boosting app registrations is not factually correct as one mobile number can be counted with only one mobile app at any point in time. The Bank targets only active users who can get onboarded only through the system controls in place, rather than mobile app downloads or registrations," the bank said in a statement.

However, Bank of Baroda bank has assured its existing customers that they will not face any disruption whatsoever and will continue to enjoy uninterrupted services on the mobile application.

It also clarified that “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”.

“We would like to reassure all our customers that our Bank’s Mobile Banking application is fully secure with robust security controls and features. The Bank has always endeavoured to provide seamless digital banking services to its customers and over the last few years, the Bank has made significant investments in technology, which provides customers with a seamless and secure banking experience, with robust controls and security features,” the Bank of Baroda added.