Bank of Baroda, the third largest public sector bank of the country, is facing strict action from the Reserve Bank of India (RBI) these days. The matter is related to its digital banking app BoB World. Many irregularities have come to light in this app. The situation is such that the bank has had to suspend many of its employees in cities like Bhopal, Baroda and Jaipur. What is this matter of BoB World? Why has RBI taken action against the bank? Why did Bank of Baroda have to suspend its employees? And what impact has this had on customers? You will get the answer to every question here…
First of all, understand that after the merger of Vijaya Bank and Dena Bank, Bank of Baroda has now become the third largest government bank in the country. Seeing the way digital and mobile banking is growing in the country, Bank of Baroda launched its digital mobile banking app ‘Bob World’ in the year 2021. Its purpose was to integrate all the services of the bank. But a major irregularity of tampering with customer data has been detected in this app.
What is the matter of ‘Bob’s World’?
In July 2023, it was revealed in several media reports that Bank of Baroda tampered with the data of the bank’s customers to increase the subscriber base on its app ‘Bob World’. The bank allegedly linked customers’ account details with other contact numbers to show more registrations on the mobile application. Many of these contact numbers are unregistered and do not belong to the customer whose account details are linked to it. After this the Reserve Bank of India has taken action against Bank of Baroda.
New customers cannot be added
Seeing the entire incident, the Reserve Bank of India took immediate action against the government bank. Bank of Baroda was refused to add new customers on its app and this work was immediately banned. Not only this, the Central Bank is now monitoring the entire matter. The bank has also been asked to take strict action. Therefore, Bank of Baroda has suspended many of its officers and employees.
The revelation of this entire matter started with the report of a TV news channel. After about 3 months, RBI has taken this strict step against the bank. The central bank has asked Bank of Baroda to make reforms, which the bank has confirmed in a statement. Not only this, RBI has asked for a status report from Bank of Baroda in this matter within the next 2 weeks.
No suspension in metro cities
Quoting a person with knowledge of the entire incident, ET says that the bank has suspended its officers and employees in small towns. Metro cities are still out of it. Money Control has claimed in one of its news that Bank of Baroda has suspended more than 60 people, out of which 11 are people of Assistant General Manager level. All these people play the role of area manager, zonal head and head of about 25 branches.
Bank of Baroda has arranged for internal audit in this matter. At the same time, work is being done by the bank to trace the people responsible. The bank is also improving the app and rectifying the data. He says that he will work to remove all the concerns of the Reserve Bank in this matter.
Customers are demanding audit
There is now a demand for an external audit in the case of ‘Bob World’. A civil society platform has written a letter to Central Bank Governor Shaktikanta Das for this. It has been said that in the case of ‘Bob World’, an information security audit mechanism should be followed, so that the data and other interests of the customers can be protected.
Anyway, this is a serious tampering with the customer data in the bank. Because of this they may have to take financial risks. He may become a victim of online phishing or fraud.