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The second-largest public sector bank in India<\/strong><\/a>, Bank of Baroda (BoB)<\/strong><\/a>, is facing app-related issues. The Reserve Bank of India (RBI)<\/strong><\/a> has directed BoB to stop adding customers to its mobile app due to problems in the onboarding process. This action by the central bank comes in response to complaints that some BoB employees used strangers\u2019 mobile numbers to onboard customers for mobile banking to meet enrollment targets.<\/p>\n \u00a0<\/p>\n BoB is the second-largest public-sector bank and the third-largest state-owned lender in terms of active mobile banking customers. The RBI had previously imposed restrictions on India\u2019s top private lender, HDFC Bank<\/strong><\/a>, in its digital operations for over a year, before lifting them in March 2022.<\/p>\n \u00a0<\/p>\n Bank of Baroda<\/strong> <\/a>has been instructed to ensure that existing app users do not face any disruptions. The RBI\u2019s action is based on concerns about the manner in which customers were being onboarded onto the \u201cBoB World\u201d application. The central bank stated, \u201cAny further onboarding of customers of the bank on the \u2018BoB World\u2019 application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI.\u201d<\/p>\n \u00a0<\/p>\n In response to the RBI\u2019s<\/strong><\/a> directive, Bank of Baroda stated, \u201cWhile the bank has already carried out corrective measures to address the concerns of RBI, we have initiated further steps to plug any remaining gaps identified and will work closely with RBI to address their concerns at the earliest to their satisfaction.\u201d The bank assured that new customers would still have access to other digital channels, including net banking and WhatsApp banking, in addition to debit cards and ATMs.<\/p>\n \u00a0<\/p>\n Bank of Baroda had previously stated that they have checks in place to ensure that the app cannot be linked to a mobile number more than once. The lender also mentioned that customers need to follow a two-factor authentication process to register or update a mobile number. The restriction on onboarding new customers through the app could potentially impact new account openings, as the mobile app is a primary channel for a significant portion of customers. The app also caters to non-customers by enabling account opening through video KYC.<\/p>\n \u00a0<\/p>\n In its presentation following the FY23 results, Bank of Baroda revealed that its app had over 3 crore activated users, with 41 lakh customers conducting 86 lakh transactions every day. The app, which boasts 8.1 million daily transactions, also facilitates 43% of time deposits for the bank. It\u2019s worth noting that the action taken against BoB marks the first instance where the RBI has directed a bank to block the mobile banking channel for new customers, highlighting the gravity of the situation.<\/p>\n \u00a0<\/p>\n The Bank of Baroda\u2019s mobile app is named \u2018BoB World.\u2019<\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n RBI Directives:<\/strong> The Reserve Bank of India (RBI) has instructed Bank of Baroda (BoB) not to add new customers to its mobile app due to concerns over the onboarding process.<\/p>\n \u00a0<\/p>\n Lapses in Onboarding Process:<\/strong> The central bank\u2019s action follows complaints that some BoB employees used the mobile numbers of strangers to onboard customers for mobile banking to meet enrolment targets.<\/p>\n \u00a0<\/p>\n Ranking and Customer Base:<\/strong> Bank of Baroda is the second-largest public sector bank and the third-largest state-owned lender in terms of active mobile banking customers.<\/p>\n \u00a0<\/p>\n Previously Lifted Restrictions:<\/strong> The RBI had previously placed restrictions on the country\u2019s top private lender, HDFC Bank\u2019s digital operations for more than a year, before lifting the curbs in March 2022.<\/p>\n \u00a0<\/p>\n RBI\u2019s Directive:<\/strong> The RBI has directed BoB to rectify the deficiencies observed in the onboarding process and strengthen related processes before adding new customers to the \u2018BoB World\u2019 application.<\/p>\n \u00a0<\/p>\n Bank of Baroda\u2019s Response:<\/strong> BoB has stated that it has already taken corrective measures to address RBI\u2019s concerns and is working closely with the regulator to resolve any remaining issues to its satisfaction.<\/p>\n \u00a0<\/p>\n Alternative Channels:<\/strong> New customers are encouraged to use alternative digital channels, including net banking and WhatsApp banking, in addition to debit cards and ATMs.<\/p>\n \u00a0<\/p>\n App Usage:<\/strong> Bank of Baroda\u2019s app is a significant channel for customer transactions, with 87% of the bank\u2019s funds transfers using the immediate payment system taking place through the app.<\/p>\n \u00a0<\/p>\n Customer Base:<\/strong> The bank\u2019s app serves both customers and non-customers, enabling account opening through video Know Your Customer (KYC).<\/p>\n \u00a0<\/p>\n RBI\u2019s Unprecedented Action:<\/strong> The RBI\u2019s directive to block the mobile banking channel for new customers is a rare move and underscores the seriousness of the issues identified.<\/p>\n \u00a0<\/p>\n App Name:<\/strong> The Bank of Baroda\u2019s mobile app is named \u2018BoB World\u2019 and plays a crucial role in the bank\u2019s digital banking services.<\/p>\n \u00a0<\/p>\n App Statistics:<\/strong> As of August, the \u2018BoB World\u2019 app had over 3 crore activated users, with 41 lakh customers conducting 86 lakh transactions daily.<\/p>\n \u00a0<\/p>\n These key points summarize the situation regarding Bank of Baroda\u2019s app-related issues and the RBI\u2019s response.<\/p>\n \u00a0<\/p>\n Via @ gadgetsnow<\/strong><\/a><\/p>\n The post Bank of Baroda Faces RBI Scrutiny Over App Troubles: Restrictions on Customer Onboarding and Mobile Banking<\/a> appeared first on Before You Take<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" \u00a0 The second-largest public sector bank in India, Bank of Baroda (BoB), is facing app-related issues. The Reserve Bank of India (RBI) has directed BoB to stop adding customers to its mobile app due to problems in the onboarding process. This action by Continue reading Bank of Baroda Faces RBI Scrutiny Over App Troubles: Restrictions on Customer Onboarding and Mobile Banking<\/span>RBI\u2019s Directive to the Bank of Baroda<\/strong><\/h3>\n
Response from Bank of Baroda<\/strong><\/h2>\n
Bank of Baroda\u2019s App and Customer Impact<\/strong><\/h3>\n
BoB\u2019s App Usage Statistics<\/strong><\/h3>\n
Key points regarding Bank of Baroda\u2019s app troubles and the RBI\u2019s actions:<\/h3>\n