In a recent development, the Reserve Bank of India (RBI) has issued a directive to state lender Bank of Baroda, instructing it to immediately suspend the onboarding of new customers through its digital banking application, BoB World. The central bank’s action is rooted in “certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application,” as stated in an RBI press release dated October 10.
In response to the RBI’s directive, Bank of Baroda promptly released a clarification, asserting that it had already taken corrective measures to address the concerns highlighted by the RBI. Furthermore, the bank is actively working on additional steps to rectify any remaining deficiencies. The statement from the bank emphasized their commitment to cooperating closely with the RBI to ensure that the regulator’s concerns are fully addressed and resolved to their satisfaction.
The RBI’s directive specifies that any future onboarding of customers onto the BoB World application will be contingent upon the bank rectifying the observed deficiencies and strengthening related processes to meet the RBI’s standards.
Importantly, the RBI has assured existing customers who have already been onboarded onto the BoB World application that they should not encounter any disruptions due to this suspension. The central bank’s focus remains on protecting the interests of existing users.
This development follows earlier reports in July 2023 that raised concerns about the BoB World application’s involvement in tampering with customer accounts. These reports alleged that the bank had linked contact details of different individuals to artificially inflate the number of mobile application registrations. In response, Bank of Baroda vehemently denied the claims, asserting that the use of unauthenticated or non-customer mobile numbers for boosting app registrations is factually incorrect. The bank clarified that one mobile number cannot be linked to multiple accounts through the BoB World application.
Bank of Baroda also reassured its existing customers that they would continue to enjoy uninterrupted services on the mobile application, emphasizing that this directive from the RBI does not impact the bank’s other digital banking channels. These include Net Banking, WhatsApp Banking, Debit Cards, ATMs, and more, all of which will continue to serve both existing and new customers.
The bank also took the opportunity to underline its commitment to cybersecurity and customer security, stating that its mobile banking application is equipped with robust security controls and features. Bank of Baroda has made substantial investments in technology over recent years to ensure a seamless and secure banking experience for its customers.
As Bank of Baroda collaborates with the RBI to address the concerns raised, customers can expect ongoing vigilance in maintaining the integrity and security of their banking experience.
In conclusion, the RBI’s directive underscores the importance of maintaining the highest standards of security and compliance in digital banking applications. Bank of Baroda’s immediate response and commitment to resolving the issues demonstrate the seriousness with which banks and regulators approach the safeguarding of customer interests in the digital age.
Sources By Agencies