The Reserve Bank of India (RBI) has directed Bank of Baroda to stop onboarding new customers on its mobile application ‘bob World’ with immediate effect.
“The Reserve Bank of India has, in exercise of its power, under section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application,” the RBI said in a notification.
“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 added.
Bank of Baroda is now mandated to rectify the observed deficiencies and enhance the related processes to the satisfaction of the RBI before resuming any further customer onboarding on the ‘bob World’ 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,” said the central bank.
“The bank has been further directed to ensure that already onboarded ‘bob World’ customers do not face any disruption on account of this suspension, said the RBI.
Source: India Today