The RBI has directed Bank of Baroda to temporarily suspend onboarding new customers via the BoB World app. Learn about the concerns raised, Bank of Baroda’s response, and how existing customers remain unaffected. Explore the bank’s commitment to security and seamless digital banking experiences.
The Reserve Bank of India (RBI) has recently issued a directive to Bank of Baroda, one of India’s prominent state-owned lenders, instructing them to cease onboarding new customers through their digital banking application, BoB World. The RBI’s decision follows specific concerns it has identified regarding the manner in which customers are being onboarded onto the mobile application.
The RBI’s Directive:
The RBI’s directive, which was issued on October 10, 2023, is rooted in “material supervisory concerns” that the central bank has observed in the process of onboarding customers onto the BoB World mobile application. These concerns are outlined in an official press release issued by the RBI.
Bank of Baroda’s Response:
Swiftly responding to the RBI’s directive, the Bank of Baroda released a statement clarifying its stance. They have not only acknowledged the concerns highlighted by the RBI but have also taken proactive measures to rectify the issues in question. Furthermore, the bank has expressed its commitment to implementing additional measures to address any remaining deficiencies to the satisfaction of the RBI.
Ensuring Minimal Disruption:
Importantly, the RBI has stressed that the suspension of new customer onboarding through BoB World should not lead to any disruption for existing customers who have already been onboarded. This is a crucial reassurance to the bank’s existing user base.
Previous Controversy:
This directive from the RBI comes on the heels of a controversy that emerged in July 2023. At that time, media reports suggested that Bank of Baroda’s BoB World application was involved in tampering with customer accounts. These reports allege that the bank was linking the contact details of different individuals to artificially boost the number of mobile application registrations.
Bank of Baroda’s Defense:
In response to these allegations, Bank of Baroda has vehemently denied any wrongdoing. They clarified that the claim of using unauthenticated or non-customer mobile numbers to inflate app registrations is factually incorrect. The bank emphasized that their system controls are designed to ensure one mobile number can be linked to only one account within the BoB World mobile application.
Commitment to Service Continuity:
Reassuring their existing customers, Bank of Baroda emphasized that this directive from the RBI would not disrupt their services in any way. Customers were assured that they would continue to enjoy uninterrupted services through the BoB World mobile application.
No Impact on Other Digital Banking Channels:
The Bank of Baroda clarified that the RBI’s directive exclusively pertains to the BoB World application. It does not affect any of the bank’s other digital banking channels, including Net Banking, WhatsApp Banking, Debit Cards, ATMs, and more. These channels will remain fully operational for existing and new customers alike.
Security and Technology Investment:
In concluding their response to the directive, Bank of Baroda emphasized their unwavering commitment to the security of the BoB World mobile banking application. They highlighted the presence of robust security controls and features within the app. The bank also underscored its significant investments in technology over the past few years, aimed at providing customers with a seamless and secure banking experience.
The RBI’s directive to the Bank of Baroda to halt new customer onboarding through BoB World underscores the central bank’s commitment to ensuring the integrity of digital banking services. Bank of Baroda’s swift response and commitment to resolving any concerns have been highlighted, with particular emphasis on the continuity of services for existing customers and the security measures in place within the mobile application. As the situation unfolds, Bank of Baroda remains dedicated to providing top-notch digital banking services to its customers.
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