The app in question is Bob World.
“This action is based on certain material supervisory concerns observed in the manner of onboarding their customers onto this mobile application,” the RBI said.
“Any further onboarding of customers of the bank on the ‘bob World’ application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI,” it added.
In July, Al Jazeera had reported about an illegal and unethical way of onboarding customers onto the lender’s app – The bank employees from several states were asked to sign up customers on Bob World, launched in September 2022, by linking mobile numbers to existing bank accounts randomly.
The bank then, expectedly, had denied such allegations.
However, RBI’s latest directive now adds credence to that claim.
Whether it’s significant and will have material implication on BoB’s business?
BoB doesn’t believe so and I concur.
It will be forgotten quickly and business will continue to be normal – unless there are some massive frauds that have happened due to the lapses.