Home / Business and Economy / MP Govt Reverses Bank Ban After Just One Day
MP Govt Reverses Bank Ban After Just One Day
29 Mar
Summary
- State government reversed a five-year ban on Bank of Baroda.
- The initial ban was due to non-compliance with fund transfer instructions.
- The reversal followed a representation received from the bank.
The Madhya Pradesh government rescinded an order banning Bank of Baroda from conducting government business, a mere day after its imposition. The initial directive, issued on March 27, prohibited the public sector bank from handling state transactions for five years.
This ban stemmed from allegations of non-compliance with official instructions regarding fund transfers for the Chief Minister Kisan Yojana. The state government claimed the bank failed to transfer the full Rs 1,751 crore via RTGS, causing financial loss.
However, a subsequent order on March 28 immediately cancelled the ban. This reversal occurred following a representation made by Bank of Baroda to the state government. Previously, permissions for treasury operations had also been revoked.
