Bank of Baroda Clarifies RBI's Restriction On BoB World App
The Bank Of Baroda (BoB) has issued a statement about the latest news related to its BoB World App. The Reserve Bank of India (RBI) had prohibited Bank of Baroda (BoB) from enrolling new customers through its 'Bob World' mobile app due to significant supervisory concerns. In an exchange filing on Tuesday, Bank of Baroda stated that corrective measures were being implemented to address these issues.
"As per LODR Regulations, we inform that the RBI, through its Press Release no. 2023-2024/1083 dated 10 October 2023, has directed Bank of Baroda to immediately suspend any further onboarding of customers onto its 'Bob World' mobile application. This action is based on specific supervisory concerns identified by the RBI in the Bank’s mobile banking onboarding processes. Further onboarding on the 'Bob World' application will be contingent on the Bank reinforcing related processes to the satisfaction of the RBI," BoB communicated in the filing.
The Bank has already taken corrective measures in response to the RBI's concerns, and further steps are underway to address any remaining gaps. The lender affirmed that existing customers will experience no disruption and will continue to enjoy uninterrupted services on the Bank's Bob World mobile app.
Additionally, this directive does not affect any of the bank's other digital banking channels such as netbanking, WhatsApp banking, debit cards, ATMs, etc., for both existing and new customers, as clarified by the lender.
Bank of Baroda does not anticipate a significant impact on its overall business and growth plans as a result of the RBI's action.
The RBI's decision is rooted in significant supervisory concerns regarding the onboarding process for customers on this mobile application. "Any further onboarding of the bank's customers 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 the RBI," stated the central bank in an official statement.
