The Reserve Bank of India (RBI) has instructed Bank of Baroda to stop accepting new customers on its mobile app ‘bob World’ immediately. This action comes due to concerns the RBI has about how customers are being onboarded onto the app.
Under Section 35A of the Banking Regulation Act, 1949, the RBI has the authority to issue such directives. The RBI has stated that new customer onboarding will only resume once Bank of Baroda addresses and rectifies the identified deficiencies and strengthens its related processes to the satisfaction of the RBI.
Existing ‘bob World’ customers are not expected to experience any disruption during this suspension period.
