The boy, Parveen Kumar, had been listed along with his father on an initial charge sheet after the bus driver was robbed, police in the eastern Indian state of Bihar said Friday.
The baby had been charged with robbery, extortion and banditry, said local superintendent of police Rattan Sajai.
Though the robbery in the remote village of Muzzafarpur occurred Sept. 19, the fact that a prime suspect was an infant only came to light recently when police launched their investigation, Sanjai said.
Police blamed the bus driver, saying he reported the baby as a conspirator because of a personal grudge he had with the father.
The charges against the boy have since been dropped, Sanjai said.