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BoB takes action, after RBI raises concern about tampering customer data

Oct 19, 2023

By: BlinkX Research Team

Bank of Baroda (BoB) has taken action, including suspending staff accused of tampering with customer data, in response to regulatory ire over purported attempts to inflate registrations for mobile applications.    

A statement regarding the number of employees, including those on suspension, that are the subject of action has not been released by the bank. 

Last month, several employees started receiving show-cause notices and receiving internal action transfers. Before the Reserve Bank of India (RBI) requested that the bank stop adding new consumers to its "bob world" mobile application, it was already before that.

A supervisory issue regarding the on-boarding process was raised by the RBI on October 10. The majority of the employees who are being disciplined were a part of the country's branch networks in the North and West.

In addition to performing an internal audit, cross-verification of newly onboarded consumers is also in progress. Three to four weeks is when the exercise is supposed to be finished, according to a union representative.

In a statement released last week, the BoB stated that it had already taken corrective action to address the RBI's concerns and has started additional actions to close any gaps that remained. It did not anticipate that the bank's overall business and expansion objectives would be materially impacted by this decision (the restrictions on onboarding new customers on Bob World).

It will work closely with the RBI to address concerns at the earliest to its satisfaction, BoB added.