Our Bureau
Mumbai: Less than 24 hours after issuing an order banning Bank of Baroda (BoB) from handling state govermment transactions, the Madhya Pradesh government has withdrawn the direction.
The order, issued on March 27, had barred the BoB from handling government transactions for five years, citing non-compliance with official instructions on fund transfers under the state's chief minister Kisan Yojana.
However, after the respresentation by the bank the order was withdrawn the next day, a bank spokesperson confirmed.
The initial MP government order had said that BoB failed to transfer the full amount of ₹1,751 crore, as directed by the state government.
The government order had said that the lapse caused a financial loss to the state exchequer and amounted to non-compliance with government directives which is why the government imposed a five-year ban on the bank from undertaking any government business and also withdrew earlier permissions granted for treasury-related operations.
But this order was revoked on March 28 after a representation from the bank.
Mumbai: Less than 24 hours after issuing an order banning Bank of Baroda (BoB) from handling state govermment transactions, the Madhya Pradesh government has withdrawn the direction.
The order, issued on March 27, had barred the BoB from handling government transactions for five years, citing non-compliance with official instructions on fund transfers under the state's chief minister Kisan Yojana.
However, after the respresentation by the bank the order was withdrawn the next day, a bank spokesperson confirmed.
The initial MP government order had said that BoB failed to transfer the full amount of ₹1,751 crore, as directed by the state government.
The government order had said that the lapse caused a financial loss to the state exchequer and amounted to non-compliance with government directives which is why the government imposed a five-year ban on the bank from undertaking any government business and also withdrew earlier permissions granted for treasury-related operations.
But this order was revoked on March 28 after a representation from the bank.
