RBI Greenlights Bank of Baroda's Bob World for new customers

Bob World app: The Reserve Bank of India (RBI) has granted Bank of Baroda permission to resume onboarding new customers through its 'Bob World' application, lifting restrictions imposed over six months ago due to supervisory concerns.

The RBI's move comes after it barred the state-owned Bank of Baroda (BoB) from adding new customers via its mobile app 'Bob World' on October 10, 2023, citing material supervisory concerns.

Announcing the regulatory update, Bank of Baroda disclosed in a filing on Wednesday, "We wish to inform the bank the bank 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 the Bob World application in accordance with the applicable guidelines and existing laws or regulations."

With this development, Bank of Baroda will promptly resume the onboarding process for new customers through the Bob World application while reaffirming its commitment to strict adherence to and compliance with regulatory guidelines.

Last week, the RBI similarly lifted restrictions on Bajaj Finance concerning the sanctioning and disbursal of loans via eCOM and Insta EMI Card channels, signalling a broader trend of regulatory adjustments.

Previously, the RBI had imposed restrictions on Kotak Mahindra Bank, prohibiting the onboarding of new customers via online and mobile banking platforms, along with an immediate halt on fresh credit card issuances following scrutiny.

The central bank's actions have been consistent in enforcing regulatory compliance among financial institutions. In December 2020, HDFC Bank faced restrictions on new card issuances and the launch of digital initiatives due to technical outages. Subsequently, after implementing remedial measures, HDFC Bank saw a partial lifting of the card issuance ban in August 2021, with the complete ban on new technology initiatives being lifted in 2022.

(with PTI inputs)