RBI directs Bank of Baroda to halt adding new customers via app
Mumbai: The Reserve Bank of India (RBI), on Tuesday, directed state-owned lender Bank of Baroda to cease the onboarding of new customers through the BoB World, the bank's digital banking application.
“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.
In response to this directive from the RBI, the Bank of Baroda issued a statement assuring that it has promptly implemented corrective measures to rectify the concerns raised by the RBI. Additionally, the bank is actively taking further steps to address any remaining issues.
The statement read: “While the Bank has already carried out corrective measures to address the concerns of the RBI, we have initiated further steps to plug any remaining gaps identified and we will work closely with the RBI to address their concerns at the earliest to their satisfaction.”
The RBI has specified that any future customer onboarding via the application must be contingent on the bank rectifying the identified deficiencies and fortifying the associated procedures to the RBI's contentment.
The RBI also emphasized that customers who have already been onboarded should not experience any disruptions.
Addressing the situation, the bank refuted the claim of utilizing unverified or non-customer mobile numbers to enhance app registrations. Furthermore, the bank clarified that a single mobile number belonging to a customer cannot be associated with multiple accounts through the bank's mobile application, BoB World.
"The point raised on using unauthenticated, stranger’s or non-customer mobile numbers for boosting app registrations is not factually correct as one mobile number can be counted with only one mobile app at any point in time. The Bank targets only active users who can get onboarded only through the system controls in place, rather than mobile app downloads or registrations," the bank said in a statement.
However, Bank of Baroda bank has assured its existing customers that they will not face any disruption whatsoever and will continue to enjoy uninterrupted services on the mobile application.
It also clarified that “this order does not impact any of the Bank’s other Digital Banking channels such as Net Banking, WhatsApp Banking, Debit Cards, ATMs, etc. for servicing its existing customers as well as for onboarding of new customers”.
“We would like to reassure all our customers that our Bank’s Mobile Banking application is fully secure with robust security controls and features. The Bank has always endeavoured to provide seamless digital banking services to its customers and over the last few years, the Bank has made significant investments in technology, which provides customers with a seamless and secure banking experience, with robust controls and security features,” the Bank of Baroda added.
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