New Delhi :
Bank of Baroda (BoB) receives a significant reprieve as the Reserve Bank of India (RBI) removes restrictions on adding new customers through its mobile app.
This development allows the bank to resume onboarding customers via the BoB World application,
following reform measures implemented by Bank of Baroda.
RBI’s Decision
In an exchange filing, Bank of Baroda announced that the RBI, through a letter dated May 8, 2024, has lifted the restrictions on BOB World with immediate effect.
This decision empowers the bank to onboard customers through its mobile app in accordance with applicable guidelines and existing laws/regulations.
Previous Restriction
Bank of Baroda faced restrictions from RBI on October 10, 2023,
prohibiting the addition of new customers via the BOB World app.
This action was taken due to concerns over irregularities in the bank’s services,
including the improper linking of mobile numbers to customers’ bank accounts to inflate registrations on its mobile banking application.
Potential Impact on Shares
The RBI’s decision to lift restrictions is likely to have a notable impact on Bank of Baroda’s shares.
On May 8, the bank’s shares witnessed a 1.35 percent increase, closing at Rs 262.70.
With a market capitalization of Rs 1,35,851 crore, the bank’s shares have seen a significant rise of 36 percent in the last 6 months.
This positive development signals optimism among investors regarding the bank’s future prospects.
