Bank of Baroda shares fall around 4% after RBI ban on adding new customers on app

BoB was also the top drag in the Nifty public sector bank index, which was down 0.2 per cent at the time of writing.

The central bank on Tuesday asked the public sector lender to suspend further onboarding of customers onto the ‘bob World’, the lender’s mobile banking application.

“The RBI has, in exercise of its power, under section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the ‘bob World’ mobile application,” RBI said in a release

The RBI said the action on the bank is based on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application.

Under section 35A, the RBI has the power to give directions to banks ‘to prevent the affairs of any banking company being conducted in a manner detrimental to the interests of the depositors or in a manner prejudicial to the interests of the banking company’.