RBI bans Bank of Baroda from onboarding new customers on its mobile app
Mumbai (PTI): The Reserve Bank of India on Tuesday barred state-owned Bank of Baroda from onboarding new customers on its mobile app 'bob World' following material supervisory concerns.
Responding to the RBI's directions, the state-owned lender said it has already carried out corrective measures to address the concerns of the central bank, and has initiated further steps to plug any remaining gaps.
"The Reserve Bank of India 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," the central bank said in a statement.
The action, the RBI said is based on certain material supervisory concerns observed in the manner of onboarding of their customers onto this mobile application.
"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," it added.
Bank of Baroda has been further directed to ensure that already onboarded 'bob World' customers do not face any disruption on account of this suspension.
In a filing to stock exchanges, the bank said, "We will work closely with the RBI to address their concerns at the earliest to their satisfaction".
The lender also assured its customers that they will not face any disruption and continue to experience uninterrupted services on the mobile app.
"Further, this order does not impact any of the bank's other digital banking channels such as netbanking, WhatsApp banking, debit cards, ATMs, etc, for servicing its existing customers as well as for onboarding of new customers," the lender added.
The bank does not expect the RBI's action to have a material impact on its overall business and growth plans.
In December 2020, the RBI had barred HDFC Bank from issuing new cards and launching new digital initiatives after repeated instances of technical outages, which is the market leader in the credit cards segment.
The RBI action came after the bank's customers faced a number of incidents of outages in internet banking, mobile banking, and payment utilities over the past two years.
Following remedial action from HDFC Bank, the RBI partially lifted the ban on card issuances in August 2021. However, the ban on launching new technology initiatives continued and was lifted in 2022.
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Justice A.P. Shah terms 'One Nation, One Election' unconstitutional
New Delhi: Former Delhi High Court Chief Justice A.P. Shah has told a Joint Parliamentary Committee (JPC) that the proposed 'One Nation, One Election' (ONOE) Bill is unconstitutional and violates democratic principles and the federal structure, sources said.
Justice Shah, who is also a former chairman of the Law Commission, submitted a 12-page report while deposing before the JPC on Monday (March 18), The New Indian Express reported. He raised concerns over the bill, particularly regarding the power it grants to the Election Commission to recommend postponing state assembly elections.
Assembly elections must be held for full term: Justice Shah
Justice Shah stated that assembly elections should be held for a full five-year term and expressed skepticism over the claim that simultaneous elections would significantly reduce public expenditure. When asked about alternatives to the bill, he said he would present his views to the committee at a later stage.
Harish Salve defends the bill
Senior advocate Harish Salve also appeared before the JPC and supported the bill, arguing that it aligns with constitutional requirements.
ONOE bills introduced amid opposition resistance
Despite strong opposition citing threats to federalism and the basic structure doctrine, the bills facilitating 'One Nation, One Election' were introduced in the Lok Sabha in December 2023.
Union Law Minister Arjun Ram Meghwal introduced the Constitution (One Hundred and Twenty-Ninth Amendment) Bill, 2024 and the Union Territories Laws (Amendment) Bill, 2024 after a division vote. The introduction was approved with 269 votes in favour and 198 against.
The bills were subsequently referred to a JPC for further examination.
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