Bank of Baroda, one of India's major financial institutions, has suspended more than 50 employees, including assistant general managers, in response to allegations of irregularities in its mobile banking app 'BoB World.' The suspensions represent the bank's most substantial disciplinary action to date, stated sources privy to the matter.
The issues with the 'BoB World' app include inflated user registration numbers and irregularities in customer onboarding. The Reserve Bank of India (RBI) has subsequently prohibited the bank from adding new users until it rectifies these issues and strengthens its processes.
Devidas Tuljapurkar, from the Maharashtra State Bank Employees Federation, noted an intense competition and ambitious targets set by banks, potentially leading to field staff mistreatment.
This situation mirrors similar actions taken by RBI against other financial institutions. In December 2020, due to repeated technological outages, RBI barred HDFC Bank from issuing new cards and initiating digital projects. Mastercard (NYSE:MA) and American Express (NYSE:AXP) also faced similar actions for failing to comply with data localisation rules.
Following corrective measures, the ban on HDFC Bank's card issuances was partially lifted in August 2021. However, the restriction on launching new tech initiatives remained in place until 2022. As for Bank of Baroda, it remains to be seen when and how it will resolve the current issues surrounding its 'BoB World' app.
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