Reserve Bank of India Takes Swift Action Against Bank of Baroda

In a decisive move under section 35A of the Banking Regulation Act, 1949, the Reserve Bank of India has issued a directive to Bank of Baroda, instructing the bank to immediately halt the onboarding of new customers onto their ‘bob World’ mobile application. This action comes in response to critical supervisory concerns related to the onboarding process for customers on the mobile app.

The Reserve Bank of India has raised substantial apprehensions about the manner in which Bank of Baroda has been onboarding customers onto the ‘bob World’ mobile application. The regulatory body has stated that any future customer onboarding onto the app will only be permitted once the identified deficiencies have been rectified, and the associated processes have been substantially bolstered to the satisfaction of the RBI.

It is essential to note that the Reserve Bank of India has also issued a directive to ensure that existing ‘bob World’ customers do not experience any disruptions as a result of this suspension. This directive underscores the importance of safeguarding the interests and experiences of current users of the mobile application.

Bank of Baroda will need to work swiftly and diligently to address the concerns raised by the RBI, demonstrating their commitment to maintaining the integrity of their services. The regulatory move reflects the Reserve Bank of India’s dedication to ensuring a secure and efficient banking environment for all customers.