The central bank’s action comes 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 bank has denied the allegations.
In its press release 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.
In a stock market notice the bank said it will work closely with the RBI to address their concerns at the earliest. “This order does not impact any of the bank’s other digital banking channels such as net Banking, whatsapp banking, debit cards, ATMs, etc. for servicing its existing customers as well as for onboarding of new customers… We do not expect this action to have a material impact on the bank’s overall business and growth plans,” the bank said.
Existing customers on the bob World application will continue to enjoy uninterrupted services and the app is fully secure with robust security controls and features, the bank said.