BoB reorder amid RBI ban

The Bank of Baroda (BoB) is presently undergoing a substantial and noteworthy transformation in light of recent regulatory actions taken by the Reserve Bank of India (RBI). The RBI has enforced a temporary prohibition on new customer onboarding for the ‘bob World’ mobile application, and this measure was prompted by a series of significant supervisory concerns raised by the RBI. These concerns are primarily centred around the potential manipulation of the ‘bob World’ app, an issue that has cast a shadow over BoB’s digital lending operations.

Akhil Handa, who had been at the helm of BoB’s digital lending division, has taken a significant step in response to the unfolding situation by resigning from his position. The formal acknowledgement of his resignation came through a regulatory filing, underscoring the gravity of the situation and BoB’s commitment to address the regulatory concerns raised by the RBI.

In an effort to demonstrate their seriousness and dedication to resolving the issues that led to the RBI’s ban, BoB has taken the additional step of suspending officials who are allegedly implicated in the manipulation of the ‘bob World’ app. This action not only aligns with the RBI’s directive but also serves as a proactive measure to ensure compliance and restore the integrity of BoB’s digital lending operations.

To further illustrate its commitment to addressing the RBI’s concerns and rectifying the situation, Bank of Baroda has appointed Kadgatoor Sheetal Venkatesmurt as the new head of digital lending. This leadership change underscores the bank’s proactive approach to tackling the issues at hand and moving forward with a fresh perspective.

It’s important to note that the ‘bob World’ app had previously played a pivotal and strategic role in Bank of Baroda’s digital strategy. Given the significance of this platform, the bank is now confronted with the formidable challenge of resolving the regulatory issues and addressing the concerns raised by the RBI to regain the ability to conduct its digital lending operations on the ‘bob World’ app in a normal and compliant manner. This situation underscores the vital importance of regulatory compliance and the potential repercussions that non-compliance can have within the financial sector, where adherence to stringent regulations is paramount.