The Reserve Bank of India (RBI) on Tuesday directed state-run Bank of Baroda (BOB.NS) to stop onboarding customers onto its mobile application, citing "certain material supervisory concerns".
"Any further onboarding of customers of the bank on the 'bob World' application will be subject to rectification of the deficiencies observed and strengthening of the related processes by the bank to the satisfaction of RBI," the central bank said in a statement.
The move comes after news agency Al Jazeera, in July, reported, citing whistleblowers, that Bank of Baroda linked mobile numbers of strangers to boost registrations on the application, compromising security.
Reuters has not independently verified these claims, which the bank had denied at the time.
The central bank has been increasingly pushing lenders to adopt efficient customer service standards.
Bank of Baroda has also been directed to ensure that existing customers on the mobile application do not face any disruption due to the suspension, the RBI said.
