This Post Is Recently Updated on Oct 27, 2023 @ 7:34 am by TBB Desk
Bank of Baroda has faced controversy following a potential fraud related to the enrollment process for its Internet banking app. According to a report by Al Jazeera in July, employees at certain Bank of Baroda branches were accused of linking customers’ bank accounts with unrelated mobile numbers and enrolling them on the “Bob World” app. The app, which offers various digital banking services such as loans, savings, investments, bill payments, and travel bookings, was allegedly misused by employees under pressure to meet sign-up targets.
The employees would link bank accounts without associated mobile numbers to the contact details of different individuals, including staff, sanitation workers, and security personnel. After the initial registration, the accounts would be deregistered from the app, and the same mobile numbers would be reused to link a new set of bank accounts. Each branch reportedly had a designated nodal officer overseeing this process. Bank of Baroda initially denied the allegations but later initiated an internal audit in response.
The Reserve Bank of India (RBI) has taken action by banning the Bank of Baroda app from onboarding new customers. The RBI has mandated that the bank rectify the identified issues and strengthen relevant processes to the regulator’s satisfaction before signing in new customers to the BoB World app, as reported by ET.
In response to the situation, Bank of Baroda has suspended certain employees and launched an investigation to determine accountability. The suspensions have primarily taken place in smaller towns outside the metropolitan areas, according to a source familiar with the process.
