The Bank of Baroda has been ordered by RBI to halt onboarding new clients through its banking app.
What motivated RBI to make this choice? Let’s investigate!
Bank of Baroda received a directive from the RBI to stop onboarding new customers. State-owned lender Bank of Baroda was given instructions to stop onboarding new users through its digital banking application, BoB World, by the Reserve Bank of India (RBI) on October 10.
The central bank informed Bank of Baroda to stop adding any more of its customers to the mobile application “BoB World” immediately. This action is being taken in response to specific, serious supervisory concerns about how users are being added to this mobile application.
In response to the RBI’s directive, Bank of Baroda issued a statement outlining the corrective actions they had already taken to address the issues raised by the RBI. They further guaranteed that they were taking extra measures to remedy any lingering inadequacies and that they would work closely with the RBI to rapidly and satisfactorily address their concerns.
The RBI further emphasized that any future inclusion of the bank’s customers in the application would be subject to the bank correcting any issues and strengthening any necessary procedures to satisfy its criteria.
Current BoB World users shouldn’t encounter any disruptions.
The RBI highlighted in their statement that the suspension should not cause any service interruptions for current consumers who have already signed up for “BoB World.”
In a previous incident in July 2023, media sources claimed that BoB World had altered client accounts, allegedly by connecting the contact information of unconnected people to increase the number of mobile application registrations.
In response, Bank of Baroda claimed that it was factually incorrect to use non-customer or unconfirmed cell numbers to artificially inflate app registrations. They made it clear that a customer’s cell number could only be used to access one account on the bank’s mobile app, BoB World.
The bank promised its present users that there would be no interruptions and that they could keep using the mobile application as usual. They further underlined that this decision will not effect the bank’s other digital banking channels for current or potential customers, including Net Banking, WhatsApp Banking, Debit Cards, and ATMs.
In their last statement, Bank of Baroda reiterated their dedication to offering secure digital banking services while underlining the considerable investments they have made in technology to provide their clients with a smooth and secure banking experience.