The RBI has directed Bank of Baroda not to add customers to its mobile app following lapses in the onboarding process. The central bank took this measure in response to accusations that some BoB personnel had enrolled consumers for mobile banking using the mobile numbers of strangers in order to reach enrollment goals.
The bank has been instructed to take precautions to prevent any disruptions for users of the current app. In terms of active mobile banking users, Bank of Baroda ranks second among public sector banks and third among state-owned financial institutions.
“This action is based on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application. Any further onboarding of customers of the bank on the ‘BoB World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI,” the regulator said in a statement.
“While the bank has already carried out corrective measures to address the concerns of RBI, we have initiated further steps to plug any remaining gaps identified and we will work closely with RBI to address their concerns at the earliest to their satisfaction,” Bank of Baroda said in a statement. The bank said that new customers will have access to other digital channels, including net banking and WhatsApp banking, besides debit cards and ATMs.
BoB had said earlier that it has checks in place to ensure the app cannot be linked to a mobile number more than once. The lender had also said that customers need to follow a two-factor authentication process to register or update a mobile number