The Reserve Bank of India (RBI) has taken action to prevent state-owned Bank of Baroda from adding new customers to its mobile application 'bob World' immediately, citing significant supervisory concerns.
In a statement, the RBI stated that it has exercised its authority under Section 35A of the Banking Regulation Act, 1949, to instruct Bank of Baroda to suspend the onboarding of customers onto the 'bob World' mobile app. This action is based on specific supervisory concerns identified in the process of adding customers to the application.
The RBI emphasized that any future onboarding of the bank's customers on the 'bob World' app will be contingent on the bank addressing the observed deficiencies and strengthening the associated processes to the satisfaction of the RBI.
Additionally, the RBI has directed the bank to ensure that existing 'bob World' customers do not experience any disruptions as a result of this suspension.