The Reserve Bank of India (RBI) has taken a significant step to address supervisory concerns by ordering Bank of Baroda (BoB) to immediately halt the onboarding of new customers onto their mobile app, ‘bob World‘. This action comes in the wake of material deficiencies discovered by the RBI during the customer onboarding process.
Material Supervisory Concerns Emerge
The directive from RBI underscores the presence of material supervisory concerns that have arisen during the customer onboarding procedures of ‘bob World,’ the mobile app provided by Bank of Baroda. These concerns have prompted RBI to intervene and ensure the rectification of these deficiencies.
Corrective Actions and Strengthening Processes
In response to the RBI directive, Bank of Baroda is actively taking corrective measures to address the identified deficiencies and strengthen the related processes. The bank has expressed its commitment to working closely with RBI to resolve these concerns satisfactorily and in a timely manner.
Assurance to Existing Customers
Bank of Baroda is committed to ensuring that the existing customers who are already onboarded onto the ‘bob World’ app will not experience any disruptions or inconveniences due to this suspension. The bank is taking steps to guarantee the seamless continuation of services for its current user base.
Allegations of Fraudulent Activity
The genesis of this action can be traced back to allegations made by ‘The Reporters’ Collective,’ a digital news outlet, in July. They reported that Bank of Baroda staff had allegedly linked fraudulent mobile numbers with customers’ accounts to unlawfully sign them up on the ‘bob World’ mobile app.
Security and Business Continuity Assurances
Bank of Baroda remains steadfast in assuring its customers of the security and reliability of the ‘bob World’ app. The bank has emphasized the robust security controls and features in place to safeguard its customers’ information and transactions. Moreover, Bank of Baroda is confident that this directive from RBI will not have a significant impact on the bank’s overall business and growth plans.
No Impact on Other Digital Banking Channels
Importantly, Bank of Baroda has clarified that this directive specifically pertains to the ‘bob World’ mobile app and does not affect the bank’s other digital banking channels, such as net banking and WhatsApp banking. These channels will continue to serve both existing customers and new customers seeking to join the bank’s digital ecosystem.
RBI’s Commitment to Digital Banking Security and BoB’s Response
The RBI’s decision to halt further onboarding of customers onto the ‘bob World’ mobile app reflects the regulator’s commitment to ensuring the security and integrity of digital banking services. Bank of Baroda is actively addressing the issues raised and working to ensure uninterrupted service for its existing customers while maintaining its commitment to robust security measures and growth in its digital banking operations.