RBI took action on Bank of Baroda, issued new rules for NBFCs also, millions of customers will be affected

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RBI Action: If your savings or current account is with Bank of Baroda (Bank of Baroda) then this news is very important for you. Reserve Bank of India (Reserve Bank of India) Bank of Baroda (BoB) has been banned from adding new customers on its mobile app ‘Bob World’ with immediate effect. RBI said that this action was taken after some concerns were observed in the way customers were onboarded on the application. According to the statement issued by RBI, the Reserve Bank of India, exercising its authority under Section 35A of the Banking Regulation Act, 1949, has allowed Bank of Baroda to start the process of adding more customers on the ‘Bob World’ mobile app with immediate effect. Instructed to suspend. The statement said that any process of adding the bank’s customers on the ‘Bob World’ app will take place only after the bank addresses the deficiencies found and strengthens the related processes and to the satisfaction of the RBI. RBI said that the bank has been asked to ensure that existing ‘Bob World’ customers do not face any problem due to this suspension.

PCA rules will be applicable on government NBFCs from October 2024: RBI

The Reserve Bank of India (RBI) said that stricter monitoring norms under the Prompt Remedial Action (PCA) format will be applicable to government-owned non-banking financial companies (NBFCs) from October 2024. When a financial entity is placed under the PCA format, there are restrictions on its distribution of dividends/remittance of profits, investment or sale of equity to promoters/shareholders and giving guarantees or taking on other contingent liabilities on behalf of group companies. The Reserve Bank had released the PCA format for NBFC units on December 14, 2021. Earlier only private sector NBFC companies were kept under its purview but now it has been decided to bring public sector NBFCs also under it. RBI said in a circular that the format has been reviewed and it has been decided to extend it to government NBFCs (except small companies) from October 1, 2024. For this, the audited financial data till or after March 31, 2024 will be used as the basis. Some of the major government NBFC companies include PFC, REC, IRFC and IFCI. The purpose of implementing the PCA format is to ensure timely monitoring of any financial entity. This requires institutions to initiate and implement timely remedial measures to improve their financial health.

What is NBFC?

NBFC stands for Non Banking Financial Company (Non-Banking Financial Company) Is. NBFCs are financial institutions that do not carry out the core activities of banking, but provide financial services that banking companies do. NBFCs can operate in various financial industries such as commercial, commercial finance, commercial commerce, commercial industry, investment, investment schemes etc. These may include retail finance, trade finance, trading industries, investment and capital markets. NBFCs play an important role in meeting the financial needs in India, especially where the number of bank users is low or there is no access to financial services.

what is mobile banking

Mobile banking is a technological measure used to simplify and facilitate various financial transaction tasks. It is used through a mobile device such as a smartphone or tablet. Mobile banking is provided by banks and financial institutions and it helps users to carry out their financial transactions in a convenient and secure manner.

Through mobile banking people can perform various financial operations, such as:

• Account Information: Can get comprehensive information about their bank accounts like balance, transaction history, etc.

• Financial transactions: Transfer money, make bill payments, or streamline various financial transaction tasks.

• Bank Transaction Services: Can deposit and withdraw money from bank accounts, receive check books etc.

• Personal Loan and Status Information: Get personal loan criteria and details such as loan rates, monthly balance, etc.

• Receiving various messages and updates: Can receive account related notifications and updates.

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