Bank of Baroda suspends 60 employees over digital app controversy
Bank of Baroda (BOB), a public-sector lender, has suspended more than 60 employees, including 11 assistant general managers (AGMs), after an audit of the BOB World app case. AGMs are high-ranking officers who typically oversee more than 25 branches as area managers and zonal heads. The suspensions come as part of a larger effort by the bank to fix the issues found in the app's customer onboarding process.
Irregularities found in BOB World app
As per Moneycontrol, the suspension letter from the bank stated that the employees had committed serious irregularities during their time at the bank. Some of these included adding numbers to customer accounts and registering or deregistering the BOB World app without customers' permission. The bank plans to launch a department inquiry against these employees, and depending on the findings, further action may be taken, such as termination or compensation for lost wages.
Suspensions mostly affect Vadodara region
Most of the suspended employees are from the Vadodara region, but the bank plans to continue its rectification efforts in other zones like Lucknow, Bhopal, Rajasthan, and parts of eastern Uttar Pradesh. During their suspension, affected employees will receive only one-third of their salary. If found guilty, they could face punishment postings or even dismissal. However, if they are found not guilty, they will be compensated for the lost salary during their suspension.
BOB to file rectification report with RBI
Previously, the Reserve Bank of India (RBI) instructed BoB to stop adding new customers to the BOB World app due to concerns with its customer onboarding process. BoB is now working on a rectification drive and aims to submit a report to the RBI within the next two weeks. This report will outline the actions taken by the bank to address the app's issues and could potentially lead to the lifting of the RBI's restrictions on new customer onboarding.
