Reserve Bank of India i.e. RBI has given big relief to Bank of Baroda. RBI has given permission to add new customers through Bob World application after about seven months; After this decision, there will be no need to visit the bank or its website for opening an account in Bank of Baroda, applying for credit card and loan. Customers will be able to apply for all this through the Bob World app. After this decision, there is a good rise in the bank's shares on Thursday. Despite the overall stock market crash, a rise of about 3.50 percent has been seen in the shares of Bank of Baroda.
Let us also tell you what kind of decision has come from RBI for Bank of Baroda. Also, what level have the bank's shares reached? Let us tell you that RBI had stopped the government lender Bank of Baroda from adding new customers through its mobile app Bob World on October 10, 2023. This step was taken after looking into the concerns of supervision.
BOB gave information
Bank of Baroda said in the communication sent to the stock exchange that we wish to inform that the RBI, vide its letter dated May 8, 2024, has informed the Bank of its decision to remove the above mentioned restrictions on Bob World with immediate effect. . The Bank is now free to engage customers through this App in accordance with the applicable guidelines and existing laws or regulations. The bank said that now it will start adding new customers on the Bob World app again. Along with this, it said that it is committed to ensuring compliance and adherence to the regulatory guidelines.
Action was taken against them
Last week, RBI had also removed the ban on Bajaj Finance from giving loans through Ecom and Insta EMI cards. Earlier, the Reserve Bank had banned private sector Kotak Mahindra Bank from adding new customers through online and mobile banking and issuing new credit cards. After which a significant decline was seen in the shares of Kotak Mahindra Bank. Recently news has come that Kotak Bank is planning to hire 400 employees to improve its tech portion.
Why was it banned?
In October 2023, RBI had observed some supervisory lapses in the way BoB added customers to its mobile application. After which RBI had banned the bank from adding its customers on 'Bob World' mobile application with immediate effect. In July last year, a media report said that some employees of the bank were involved in fake onboarding of customers on Bob World. The report said that some employees of the Bhopal zonal office of the bank linked some bank accounts to the mobile numbers of different people and registered them on the mobile app. Its purpose was to increase Bob World's registration numbers. The lender launched its mobile banking app in September 2021.
Transactions were affected
After this ban, there was a significant decline in the daily transactions of Bank of Baroda. If we look at the data, till September 2023 quarter (before RBI restrictions), daily transactions, both financial and non-financial, on Bob World were 7.95 million, which declined to 7.19 million by December 2023. This means that during this period there has been a decrease of 0.76 million in total transactions.
Rrise in shares
After this decision, there is a rise in the shares of Bank of Baroda since Thursday morning. The bank's shares have seen a rise of up to 3.50 percent during the trading session. At 11:05 am, the bank's shares are trading at Rs 266.90 with a rise of 1.60 percent. During the trading session, the bank's shares are trading with the day's high at Rs 271.70. A day ago the company's shares closed at Rs 262.70.
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