SBI Account freeze

How long back the Current Account was used? Probably, if an account is not operated for a certain period of time, banks normally make the account inoperative. However in such cases also, Bank needs to inform the Customer when he approaches the bank for the operation of the same account and obtains a letter that he would henceforth operate the account and obtains the latest KYC and convert the account from inoperative to operative enabling the Customer to operate the account.

 

Other possibilities of the account being frozen:

 

1. Bank exercising its general lien as the Customer has an overdue/NPA account.
2. The bank received instructions from Income Tax Department or
3. Bank received Court Order

In any case, it is incumbent upon the Bank to inform the Customer of the reason for their freezing the account,  You may escalate the matter first to the Branch Manager in writing, and if no reply is forthcoming within a reasonable time of say 2-3 working days, to the Zonal Office addressing a letter to the Zonal Head giving full details of your account.

 

Still no reply, you can file a case before Banking Ombudsman to resolve the issue.

Another possibility further to the above

The presumption is that there may be some suspected operations in the account, maybe without your knowledge and hacking.  Make a simple call and ask the banker the specific reason for freezing without intimation, note down the name of the officer and issue simple notice protesting against such freezing without operation and demand for allowing operations. immediately under intimation to you, failing which you may have to proceed legally for a remedy..  Wait for a month and file on line complaint to Ombudsman and if the freezer amount is substantial (more than Rs.5,000) file on line complaint before the District Consumer Forum.  Till then do not credit amounts with that bank and operate another bank account.

You have not posted the complete facts.

Current account is a facility provided by the banker to its customers (generally for business) for making payments,as overdraft under a specified limit, where terms and conditions are agreed by both parties.

Find out reasons from concerned Bank for freezing the account and proceed to rectify as required.

No legal issue is involved in the facts vis-a-vis query posted by author.

It can be very surprised than you're account is frozen. When a bank blocks your account, it means there may be a problem with your account or someone has a judgment against you to collect an unpaid debt. An account freeze essentially means that the bank is suspending you from carrying out certain transactions. Freezing accounts basically limits to activities that an individual can perform with his/her account.

Freezing of accounts means you will not be able to undertake any transaction in your banking account until further notice. All payment and transactions will be stopped even cheques issued by the holder earlier.

Regulators such as the Reserve Bank of India, Securities and Exchange Board of India, income-tax authorities or courts have rights to order a freeze bank accounts.

There are 7 reasons due to which a bank can freeze account. All these points are listed below:-
1) Unpaid private loans,

2) Tax dues,

3) Unpaid money to a organisation/individual,

4) Suspicious activities in the account,

5) Use of the account for illegal activities,

6) Money laundering and

7) Terrorist financing.

In order to resolve the issue, you may approach your bank's branch manager and discuss the issue with him (also submit a written application for the same). However, if bank fails to resolve the issue, an application can be sent to the Reserve Bank of India for the same.

Hope It Helps

Regards
Kevin M. Paul