Banking News

bob world: BoB suspends employees after RBI restriction on mobile app

Bank of Baroda (BoB) has suspended some employees and initiated a probe to fix accountability after the RBI banned the bank from onboarding new customers onto its ‘bob World’ mobile application last week.

“Some employees have been suspended in Bhopal, Baroda and Rajasthan and a probe has been initiated. So far the suspensions are only in the smaller towns outside the metros,” said a person familiar with the process. ET could not independently verify the number of people suspended. The bank did not reply to an email seeking comment.

BoB’s action follows banking regulator RBI’s ban on the public sector bank onboarding any new customers due to what the regulator said was certain material supervisory concerns observed in the manner of taking on customers by the bank so far.

The central bank’s action came almost three months after a news network exposed how the bank linked bank accounts to unregistered mobile numbers and signed up these numbers to the application. Even though customers were deregistered after they signed up, it led to an artificial increase in the number of downloads and sign-ups.

The RBI said that any further onboarding of customers on the ‘bob World’ application will be subject to rectification of the deficiencies and strengthening of the related processes by the bank to the satisfaction of the regulator.

Source link