The Reserve Bank of India (RBI) has exercised its power under section 35A of the Banking Regulation Act, 1949, and directed the Bank of Baroda to suspend any further onboarding of their customers onto the ‘bob World’ mobile application with immediate effect.
The directive is based on certain material supervisory concerns observed in the manner of onboarding customers onto this mobile application. The RBI has noted deficiencies in the process and has mandated that any further onboarding of customers on the ‘bob World’ application will be subject to rectification of these deficiencies.
The Bank of Baroda has been directed to strengthen its related processes to the satisfaction of the RBI before it can resume onboarding new customers. The bank has been instructed to ensure that customers already onboarded on the ‘bob World’ application do not face any disruption due to this suspension.
The RBI’s move underscores its commitment to ensuring that banking processes meet regulatory standards and that customer interests are protected. The Bank of Baroda is expected to comply with the directive and work towards addressing the identified deficiencies.
