Bob World app case: A look at the issue and the regulatory action it triggered
The Reserve Bank of India (RBI), on October 10 issued an order instructing the Bank of Baroda (BoB) to halt the recruitment of new customers through its digital banking application, BoB World. Following this, in an exclusive report on October 18, Moneycontrol revealed that BoB had suspended more than 60 employees, which included 11 Assistant General Managers (AGMs).
Here's all you need to know about the issue and the circumstances that led to the app's current situation:
What is bob World application?
Bank of Baroda launched its digital banking application 'bob World' in September 2021.
It provides a virtual banking experience and has all its digital banking services under one roof, for its customers.
What is the issue?
In July 2023, media reports said that bob World was involved in tampering with customer accounts. The report alleged that the lender linked the contact details of different people to increase the number of mobile application registrations.
To this, the bank replied that unauthenticated or non-customer mobile numbers for boosting app registrations are factually incorrect.
Also Read | One mobile number cannot be linked to multiple mobile banking users, says Bank of Baroda
Regulatory Body's Action
The Reserve Bank of India (RBI), on October 10 asked state lender Bank of Baroda to stop taking new customers through BoB World.
“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,” the central bank said in a press release.
RBI also said that any further onboarding of customers on the app will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI.
RBI also said that the existing customers should not face any disruption.
Following the RBI direction, the Bank of Baroda released a clarification stating it has already carried out corrective measures to address the concerns highlighted by the RBI and is taking further steps to plug any remaining gaps.
What's the Latest?
On October 16, Moneycontrol reported that BOB may soon file a rectification report based on the audit of the BOB World app to the RB in the next two weeks.
Also Read | Exclusive: Bank of Baroda likely to file rectification report on BOB World app audit to RBI soon
"The RBI had suspended new on-boarding of customers to our BOB World," a senior official said. "We are doing a rectification drive and hoping to send a report to the RBI in the next two weeks," the official said on condition of anonymity.
On October 18, Moneycontrol exclusively reported that BoB had suspended over 60 employees, including 11 assistant general managers."AGM-level officials are scale V officers who generally hold positions of area managers, zonal heads, and oversee heads at over 25 branches," said a BoB employee.