RBI Halts Customer Onboarding on Bank of Baroda’s ‘bob World’ App. Central Bank Raises Concerns, Bank Hikes FD Interest Rates
MUMBAI (India CSR): In a fresh directive, the Reserve Bank of India (RBI) has instructed the Bank of Baroda (BoB) to put a halt on adding new customers to its ‘bob World’ mobile application. This suspension, effective immediately, arises from significant supervisory worries highlighted by the RBI.
Immediate Suspension on Onboarding
The RBI’s concerns revolve around the way the bank has been onboarding its customers onto the ‘bob World’ app. “This action is based on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application,” stated the central bank in its recent circular released this Tuesday, October 10. While the reasons for the suspension are clear, the RBI has also emphasized that the public-sector undertaking (PSU) must ensure no disruptions for its existing ‘bob World’ app users due to this suspension.
Future Onboarding Awaits Rectification
For the bank to resume its onboarding process on the ‘bob World’ app, it must first rectify the deficiencies pointed out by the RBI. Only after making the necessary changes and improvements, and gaining RBI’s satisfaction, will the bank be allowed to continue its onboarding process.
Bank of Baroda Ups FD Interest Rates
On a related note, the Bank of Baroda announced an increase in its fixed deposit (FD) interest rates on Monday, October 9. This hike, which is up to 50 basis points (bps) and spans various tenors up to three years, will apply to deposits less than Rs. 2 crore, effective from October 9, 2023, as per the bank’s statement.
Ravindra Singh Negi, Chief General Manager – Retail Liabilities & NRI Business, BoB, commented on the rate adjustment. “We are pleased to offer attractive interest rates to customers, enabling them to earn higher assured returns. In the 2 to 3-year investment tenor, Senior Citizen depositors can now earn up to 7.90 per cent per annum, which is one of the best in the industry,” he remarked.
The bank now boasts interest rates of up to 7.40 per cent p.a for general citizens and a notable 7.90 per cent p.a. for senior citizens. The BoB has also recalibrated interest rates for its Tiranga Plus Deposit Scheme lasting 399 days, offering Senior Citizens a solid 7.80 per cent p.a. on non-callable deposits under this scheme.
BoB’s Stock Update
Following these announcements, the Bank of Baroda saw its shares climb by 1.16 per cent, closing at Rs. 214.20 each on the BSE, as of Tuesday, October 10.
Key Takeaways for Customers Regarding BoB’s ‘bob World’ App Directive
- Onboarding Pause: If you’re planning to join the ‘bob World’ mobile app, the RBI has temporarily suspended new user registrations due to supervisory concerns.
- Existing Users Unaffected: For those already using the ‘bob World’ app, rest assured. The RBI has directed the Bank of Baroda to ensure no disruptions for its existing users.
- Future Resumption: The suspension isn’t permanent. Bank of Baroda will rectify the onboarding issues, and once approved by the RBI, new user registrations will resume.
- FD Interest Rate Hike: On a positive note, BoB has increased its fixed deposit interest rates. Customers can now benefit from rates up to 7.40% per annum for general citizens and 7.90% for senior citizens.
- Bank’s Commitment: Despite the temporary halt in onboarding, the Bank of Baroda continues to offer a range of services and strives to provide the best for its customers.
