BANK OF BARODA SUSPENDS 11 AGMS AND 60 STAFF AMID DIGITAL APP CONTROVERSY (2023)

In this article we will provide information related to Bank of Baroda Suspends 11 AGMS And 60 Staff Amid Digital App Controversy as per Money Control Website report.

 THE DIGITAL APP IRREGULARITIES

In an exclusive revelation, Bank of Baroda (BoB) has taken action against more than 60 of its employees, including 11 Assistant General Managers (AGMs).

This move comes in response to concerns raised by the Reserve Bank of India (RBI) regarding irregularities in the onboarding process for new customers on its digital app, BOB World.

 AGMS AND THEIR ROLES

The 11 AGMs suspended in this matter play critical roles within the bank. AGMs, typically holding the rank of scale V officers, oversee operations at various branches.

Their responsibilities range from area management to zonal supervision.

A BoB employee elaborated on the significance of these roles and the impact of their suspension on the bank’s operations.

 

SUSPENSION LETTER DETAILS

Moneycontrol, a reliable source for financial news, has gained access to one of the suspension letters issued to an affected employee.

This action is part of a broader effort by BoB to rectify issues identified during an audit of the BOB World app case.

The suspension letter revealed that the bank acknowledged significant irregularities committed by an employee during their tenure.

These irregularities were linked to unauthorized manipulation of customer accounts and unapproved registration and deregistration of the BOB World application.

 

PRIVACY CONCERNS AND DEPARTMENTAL INQUIRY

To protect the privacy of the affected employee, Moneycontrol has opted not to disclose their name and designation, complying with their request.

The bank stated that a preliminary examination indicated that the employee’s actions, both commission and omission, warranted a departmental inquiry.

Pending the conclusion of this inquiry, the bank deemed it appropriate to suspend the employee from service.

 

EXPANDING THE RECTIFICATION DRIVE

 

The rectification drive initiated by BoB is set to continue, with the majority of suspended employees hailing from the Vadodara region, as per another source familiar with the situation.

They anticipate that similar actions may follow in other zones, including Lucknow, Bhopal, Rajasthan, and certain areas of eastern Uttar Pradesh.

 

EMPLOYEE CONCERNS AND POSSIBLE OUTCOMES

 

An employee subject to suspension shared their perspective on the situation. They disclosed that they would receive only one-third of their salary during this period.

Depending on the outcome of the investigation, the bank could impose a penalty posting or even termination. If found not guilty, the bank would provide compensation for the suspended months.

 

RBI DIRECTIVE AND ONGOING ACTIONS

 

On October 16, Moneycontrol reported that BoB is preparing to submit a rectification report to the Reserve Bank of India (RBI) based on its audit of the BOB World app.

This report is expected to be submitted within the next two weeks. The RBI had earlier directed BoB to halt the onboarding of new customers onto the BOB World mobile application due to supervisory concerns related to the customer onboarding process.

 

DEBUNKING EARLIER ALLEGATIONS

 

In July 2023, media reports had alleged that BOB World was tampering with customer accounts by linking different contact details to increase the number of mobile application registrations.

However, the bank refuted these claims, stating that allegations of using unauthenticated or non-customer mobile numbers for boosting app registrations were factually incorrect.

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