The Government of Madhya Pradesh has revoked ban on Bank of Baroda. Earlier, the Madhya Pradesh government had banned Bank of Baroda from handling government business for the next five years.
As per the new letter issued by Madhya Pradesh Government, the ban on Bank of Baroda has been revoked.
But why was ban imposed on Bank of Baroda by Madhya Pradesh Government?
According to the official order, the bank failed to follow government instructions related to the Chief Minister Kisan Yojana funds. An amount of about ₹1751 crore was supposed to be deposited under a specific government receipt head. However, the bank did not comply with these instructions. Due to this failure, the government said it suffered serious financial and administrative loss. Thus, the state government decided to stop Bank of Baroda from doing any government-related financial work for five years.
