Shares of Bank of Baroda dipped more than 2 per cent on October 11 after the Reserve Bank of India ordered it to not add new customers using its mobile app BoB World.
The Bank of Baroda on Wednesday issued a statement after the Reserve Bank of India (RBI) suspended the lender from onboarding new customers on its ‘bob World’ mobile application.
The public sector bank said it has carried out corrective measures to address the concerns of the central bank, adding that it has initiated steps to “plug any remaining gaps” identified.
“We will work closely with the RBI to address their concerns at the earliest to their satisfaction,” the bank said in its statement.
Bank of Baroda also assured that their existing customers will not be impacted by the RBI’s directive.
“We would also like to assure all our existing customers that they will not face any disruption whatsoever and will continue to enjoy uninterrupted services on the Bank’s bob World mobile app,” the bank said.
“Further, this order does not impact any of the Bank’s other Digital Banking channels such as Net Banking, WhatsApp Banking, Debit Cards, ATMs, etc. for servicing its existing customers as well as for onboarding of new customers,” it added.
The bank further stated that its mobile application is “fully secure with robust security controls and features”.
“We do not expect this action to have a material impact on the Bank’s overall business and growth plans,” Bank of Baroda said.
On Tuesday, the Reserve Bank of India suspended Bank of Baroda from onboarding new customers on its mobile application ‘bob World’.
"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 said in a notification.
Shares of Bank of Baroda fell over 2 per cent in early trade and were trading over 3 per cent lower at around 1:10 pm.