The bank shared that the issue started on March 26, 2026, when one of its branches received an email requesting the transfer of funds from a savings account of the MP Government to another government account. However, there was a mismatch between the requested amount and the available balance in the account.
Later the same day, the branch received another email with a revised amount, but this request did not include any official letter.
On March 27, 2026, the branch received another email along with an official letter from the State Government department asking for the transfer. However, the branch was closed due to the Ram Navami holiday. After making the required arrangements and approvals, the bank completed the transfer on the same day in four different parts (tranches).
On the same day, the Commissioner of DIF, Bhopal, issued a letter temporarily stopping Bank of Baroda from handling government business.
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.
The bank quickly responded. On March 28, 2026, its zonal office submitted a written explanation to the concerned department. Later that same day, the Commissioner issued another letter cancelling the earlier order with immediate effect.
The bank clarified that since the restriction was removed within 24 hours, it did not disclose the matter to stock exchanges. It also confirmed that there was no financial or operational impact on the bank.
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