Bank of Baroda is losing its banking license.

Calcutta High Court's order states that the RBI can take appropriate steps including revoking bank's licence if necessary, but it is not yet revoked.

Calcutta High Court's order states that the RBI can take appropriate steps including revoking bank's licence if necessary, but it is not yet revoked.Calcutta High Court's order copy published by Live Law shows that it has directed the Reserve Bank of India to look at the revocation of the Bank of Baroda's licence as one of the steps for refusing to clear the payment of bank guarantee invoked by Indian Oil Corporation (Ref page no.4 and 5).

Business Standard also stated that the High Court had reportedly asked the Reserve Bank of India(RBI) to consider appropriate steps against Bank of Baroda for failing to honour a bank guarantee.

Bank of Baroda issued a statement clarifying that it did not release the payment as its terms were not met, and stated that the bank will take appropriate steps as per the legal advice and comply with all the statutory and regulatory requirements.

Therefore the possibility of revoking the bank's licence was just one of the options that Calcutta High Court listed out to the Reserve Bank of India.