Introduction: The Reserve Bank of India (RBI) has taken regulatory action by directing Bank of Baroda to suspend the onboarding of customers onto its ‘bob World’ mobile application. This measure is in response to certain supervisory concerns related to the onboarding process.
RBI’s Regulatory Authority: The Reserve Bank of India, exercising its power under section 35A of the Banking Regulation Act, 1949, has issued a directive to Bank of Baroda.
Immediate Customer Onboarding Suspension: The regulatory action demands an immediate halt to any further onboarding of customers onto Bank of Baroda’s ‘bob World’ mobile application. This suspension is a consequence of material supervisory concerns detected in the onboarding process.
Remedial Measures Required: Before the bank can resume onboarding customers through the ‘bob World’ application, it is imperative that they rectify the deficiencies observed and enhance the related processes. The Reserve Bank of India seeks assurance that these improvements meet its satisfaction.
Customer Experience Assurance: The RBI’s directive also emphasizes the bank’s responsibility to ensure that customers who have already been onboarded onto the ‘bob World’ app do not experience any disruptions or inconveniences as a result of this suspension.
Chief General Manager’s Statement: The press release is signed by Yogesh Dayal, the Chief General Manager of the RBI, indicating the gravity and authority behind this directive.
Regulatory Oversight: This regulatory action highlights the RBI’s role in ensuring that banks and financial institutions adhere to robust customer onboarding processes and maintain high standards of service and security.
Conclusion: The Reserve Bank of India’s directive to Bank of Baroda to suspend customer onboarding onto the ‘bob World’ mobile application underscores the importance of robust customer onboarding processes and regulatory compliance. The bank is now tasked with addressing the supervisory concerns and enhancing their processes to the satisfaction of the RBI. Customer experience and continuity remain a priority during this period of suspension. This regulatory action serves as a reminder of the RBI’s vigilant oversight of the banking sector to safeguard customer interests and maintain the integrity of financial services.
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Reserve Bank of India
Date : Oct 10, 2023
The Reserve Bank of India has, in exercise of its power, under section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application. This action is based on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application. Any further onboarding of customers of the bank on the ‘bob World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI. The bank has been further directed to ensure that already onboarded ‘bob World’ customers do not face any disruption on account of this suspension.
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/1083
