BoB World app can onboard new customers as RBI lifts restrictions

The Reserve Bank of India (RBI) on Wednesday allowed Bank of Baroda to onboard new customers through the 'Bob World' application, more than six months after it imposed restriction following material supervisory concerns.

The RBI had imposed restriction on state-owned Bank of Baroda (BoB) on October 10, 2023 from onboarding new customers on its mobile app 'Bob World'.

"We wish to inform 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 Bob World application in accordance with the applicable guidelines and extant laws or regulations," the lender said in a regulatory filing.

The bank will now resume onboarding new customers on the Bob World application, it said, adding that it remains committed to ensure adherence and compliance of regulatory guidelines.

Last week, the RBI had lifted restrictions on Bajaj Finance on sanctioning and disbursal of loans through eCOM and Insta EMI Card.

Earlier, the RBI had imposed restriction on Kotak Mahindra Bank from onboarding new customers via online and mobile banking platforms and to stop issuing fresh credit cards with immediate effect following scrutiny.

In December 2020, the RBI had barred HDFC Bank from issuing new cards and launching new digital initiatives after repeated instances of technical outages.

Following remedial action by HDFC Bank, the RBI partially lifted the ban on card issuances in August 2021. However, the ban on launching new technology initiatives was lifted in 2022.