• Source:JND
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BoB Ban Lifted: The Reserve Bank of India (RBI) on Wednesday announced its decision to lift the ban imposed on Bank of Baroda (BoB) to onboard new customers on its mobile app BoB World. The RBI said that BoB can now onboard new customers through its BoB World application. The relaxation came six months after RBI's crackdown on BoB following material supervisory concerns, observed during the regulator's inspection of the bank's processes. BoB World, which was first launched in September 2021, provides all its digital banking services under one roof, for its customers.

"We wish to inform that the RBI, vide its letter dated May 8, 2024, conveyed to the bank its decision to lift the above mentioned restrictions on Bob World with immediate effect, as such the bank is free to onboard customers through Bob World application in accordance with the applicable guidelines and extant laws or regulations," Ban of Baroda said in a regulatory filing.

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The lender further said that it will now resume onboarding new customers on the Bob World application, asserting that it remains committed to ensuring adherence and compliance with regulatory guidelines. Following the restrictions, BoB had subsequently taken out corrective measures to address the concerns highlighted by the RBI. These included various steps at the field and corporate office, including the sacking of Chief Digital Officer Akhil Handa.

Last week, the RBI lifted restrictions on Bajaj Finance on sanctioning and disbursal of loans through eCOM and Insta EMI Card. Earlier, the RBI had restricted Kotak Mahindra Bank from onboarding new customers via online and mobile banking platforms and stopped issuing fresh credit cards with immediate effect following scrutiny.

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In December 2020, the RBI barred HDFC Bank from issuing new cards and launching new digital initiatives after repeated instances of technical outages. Following remedial action by HDFC Bank, the RBI partially lifted the ban on card issuances in August 2021. However, the ban on launching new technology initiatives was lifted in 2022.


(With Agencies Inputs)