RBI restricts Bank of Baroda from adding customers via app
The Reserve Bank of India (RBI) has ordered Bank of Baroda to halt the addition of new customers through its digital banking app, BoB World. "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 has also directed the bank to ensure that existing customers do not experience any disruptions as a result of this suspension.
Bank of Baroda to rectify deficiencies
RBI's press release states that any future onboarding of customers on the BoB World app will depend on the bank's ability to rectify the identified deficiencies and strengthen related processes. The central bank will need to approve these improvements before allowing new customer onboarding to continue. However, the specific issues observed by the RBI have not been revealed.
Allegations of tampering with customer accounts
In July 2023, media reports accused BoB World of tampering with customer accounts, claiming that the bank linked the contact details of different individuals to boost the number of mobile app registrations. In response, Bank of Baroda clarified that it was not using unverified or non-customer mobile numbers to increase app registrations. It further explained that a single mobile number can only be associated with one mobile app at any given time.
Bank's response to allegations
"The bank targets only active users who can get onboarded only through the system controls in place, rather than mobile app downloads or registrations," Bank of Baroda said in a statement. The lender emphasized that it does not use unverified, stranger's, or non-customer mobile numbers to inflate app registrations, contrary to media allegations.
