RBI allows Bank of Baroda to onboard customers via BoB World App; shares up 2%

This decision comes after the regulator had directed Bank of Baroda, India's second-largest state-owned lender, to suspend further customer onboarding onto the 'BoB World' mobile application with immediate effect back in October 2023.

Following the announcement, shares of Bank of Baroda rose by 2.10% to ₹268 from the previous close.

In a regulatory filing on Wednesday, Bank of Baroda said: "We wish to inform that the RBI, vide its letter dated 8th May 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/regulations.”

“The Bank will now resume onboarding new customers in the Bob World application. The Bank remains committed to ensure adherence and compliance of regulatory guidelines,” the filing said.

On October 10, 2023, under section 35A of the Banking Regulation Act, 1949, the RBI had taken action against the lender based on certain material supervisory concerns observed in the manner of onboarding new customers onto this mobile application.

Bank of Baroda introduced its digital banking application in 2021. The application consolidates all digital banking services offered by Bank of Baroda under one roof, providing customers with access to their bank account information anytime and anywhere.

In response to directives from the Reserve Bank of India (RBI), Bank of Baroda has confirmed that it has taken corrective actions to address the concerns raised by the RBI.

Shares of the company have gained over 14.65% since the beginning of the year. The stock has risen nearly 50.69% in the last one year.