Bank of Baroda’s app restart:
On Wednesday, the Reserve Bank of India lifted the ban on Bank of Baroda‘s ‘BoB World’ mobile application, allowing the bank to resume onboarding new customers. The ban, imposed in October 2023, prohibited the bank from adding new customers to the application. This action was taken by the central bank under section 35A of the Banking Regulation Act, 1949, due to certain supervisory concerns regarding the onboarding process of new customers onto the mobile application.
In a regulatory filing, Bank of Baroda announced the RBI’s decision to lift the restrictions, effective immediately. The bank stated its readiness to onboard new customers through the ‘bob World’ application in compliance with applicable guidelines and regulations. The bank reaffirmed its commitment to regulatory adherence and requested stakeholders to acknowledge this information in accordance with SEBI (LODR) Regulations, 2015.
Previously, it was reported that Bank of Baroda officials had linked bank accounts to unrelated mobile numbers to meet stringent onboarding targets. These reports indicated that officials from various regions resorted to such practices to achieve targets set for the bank’s new app, ‘bob World’. The bank, however, denied these allegations, stating that it targets only active users and does not engage in boosting app registrations through unauthorized means.
Following RBI’s intervention, Bank of Baroda assured corrective measures to address the concerns raised and committed to addressing any remaining issues.
Bank of Baroda’s shares closed at Rs 262.70, up by 1.35%.
