Reserve Bank of India: In order to address serious regulatory concerns, the Reserve Bank of India on Tuesday forbade the state-owned Bank of Baroda from adding new users to its mobile application, “bob World.”
RBI’s Section 35A Directive
In a statement it is said that, “The Reserve Bank of India has, in exercise of its power, under Section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application.” The RBI further stated that the action was taken as a result of certain significant supervisory concerns regarding how users were onboarded onto the service.
RBI’s Requirements for Future Onboarding
RBI added that, “Any further onboarding of customers of the bank on the ‘bob World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI.” The RBI added that the bank has been instructed to make sure that current “bob World” customers are not inconvenienced as a result of this suspension.