Bank of Baroda has taken strict action against some of its employees following an internal audit. The bank suspended over 60 employees in the ‘BoB World’ app case. The decision comes following a directive issued by the Reserve Bank of India (RBI).
As per media reports, these suspensions come on the heels of accusations of manipulation of accounts in an effort to increase the number of registrations on the ‘bob World’ app. Hence, right after the audit, the bank issued the suspension notices on 16 October to more than 60 employees, including 11 assistant general managers (AGMs).
Earlier, the Reserve Bank of India took action against the state-owned Bank of Baroda and stopped it from enrolling new customers on its mobile app ‘bob World’ . This was done due to supervisory concerns related to the manner in which customers were being onboarded onto this mobile application.
In response to the RBI’s directive, the bank stated that it has already implemented corrective measures to address the concerns raised by the central bank and has also initiated additional steps to rectify any remaining issues.
Additionally, RBI also instructed the bank to suspend any further onboarding of customers onto the ‘bob World’ mobile application, under section 35A of the Banking Regulation Act, 1949.
Bank of Baroda has received further instructions to ensure that customers who are already using the ‘bob World’ app do not encounter any interruptions due to this suspension.