On Wednesday, the Reserve Bank of India (RBI) declared its decision to revoke the prohibition placed on Bank of Baroda (BoB) regarding the enrollment of new customers on its mobile app, BoB World. The RBI specified that BoB is now permitted to bring aboard new customers via its BoB World application.
This easing of restrictions arrives half a year subsequent to the RBI’s enforcement action on BoB due to significant supervisory concerns identified during the regulator’s examination of the bank’s procedures. BoB World, initially introduced in September 2021, consolidates all its digital banking services in one convenient platform for its clientele.
“In compliance with regulatory requirements, Bank of Baroda hereby announces that the Reserve Bank of India (RBI), through its letter dated May 8, 2024, has communicated its decision to lift the aforementioned restrictions on BoB World, effective immediately. Consequently, the bank is now authorized to onboard customers via the BoB World application, adhering to the relevant guidelines and prevailing laws or regulations,” stated Bank of Baroda in a regulatory disclosure.
The lender also emphasized its commitment to upholding regulatory guidelines and announced the resumption of onboarding new customers through the BoB World application. In response to the restrictions, Bank of Baroda had implemented corrective actions to address the concerns raised by the RBI. These measures encompassed initiatives both at the field and corporate levels, culminating in the dismissal of Chief Digital Officer Akhil Handa.
Last week, the Reserve Bank of India (RBI) removed restrictions on Bajaj Finance regarding the approval and distribution of loans through eCOM and Insta EMI Card channels. Previously, the RBI had imposed limitations on Kotak Mahindra Bank, preventing it from enrolling new customers through online and mobile banking platforms, and halted the issuance of fresh credit cards with immediate effect after a regulatory review.
In December 2020, HDFC Bank faced restrictions from the RBI, barring the issuance of new cards and the introduction of fresh digital initiatives due to recurrent technical disruptions. After HDFC Bank implemented corrective measures, the RBI partially lifted the ban on card issuance in August 2021. Subsequently, in 2022, the restriction on launching new technological ventures was also lifted by the RBI.
