Bank of Baroda Resumes Government Business Following Brief Suspension

Bank of Baroda Resumes Government Business Following Brief Suspension​

Bank of Baroda confirmed a brief suspension of its government business operations following an incident involving fund transfers to the Madhya Pradesh government. The events unfolded between March 26 and March 28, 2026.

According to a timeline provided by the bank, a branch received an email request on March 26, 2026, for funds to be transferred from a Madhya Pradesh government savings account. A discrepancy was noted between the requested amount and the available balance. Later the same day, a revised amount request arrived via email.

On March 27, 2026, the branch received an email with an attached letter from the State Government Department authorizing the funds transfer. However, the branch was closed for Ram Navami. Funds were ultimately remitted in four tranches on March 27, 2026, after necessary arrangements and approvals were secured.

Subsequently, on March 27, 2026, the Commissioner, Department of Information and Public Relations (DIF), Bhopal, issued a letter debarring Bank of Baroda from conducting government business.

Bank authorities submitted a written representation to the state government department on March 28, 2026, outlining the details of the situation. Later on the same day, the Commissioner, DIF, Bhopal, issued a letter canceling the previous debarment order, effective immediately.

The initial debarment order, issued on March 27, 2026, was revoked within 24 hours on March 28, 2026. Bank of Baroda stated that the brief suspension did not have a material impact on the bank’s operations.

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