Banking sector regulator Reserve Bank of India has greatly relieved the Bank of Baroda. RBI has announced that restrictions imposed on the Bank of Baroda’s BOB World will be removed immediately. Bank of Baroda can add new customers through the BOB World App per the prescribed guidelines and rules.
Bank of Baroda has informed the stock exchanges about the Reserve Bank of India’s decision in its regulatory filing. The bank told the exchanges that the Reserve Bank of India had informed the exchanges through a letter dated May 9, 2024, that the ban imposed on the BOB World app is being lifted immediately. The bank can now add new customers through the BOB World app per the rules and guidelines.
Bank of Baroda said it will now add new customers through the BOB World application. The bank has assured that it will strictly comply with the regulatory guidelines. Earlier, on October 10, 2023, the Reserve Bank of India ordered the Bank of Baroda to stop adding new customers through the BOB World app immediately. RBI then expressed supervisory concern over the mobile banking onboarding process.
After the RBI action, the Bank of Baroda removed its Chief Digital Officer, Akhil Handa. In July 2023, news emerged that BOB World was tampering with customers’ accounts. After this news came to light, the Bank of Baroda dismissed 60 employees, including 11 posted as Assistant General Manager. Bank of Baroda launched the BOB World app in September 2021.
