Business Standard

Illegal freezing of bank accounts

Unilaterally freezing an account has a series of consequences on standing instructions, for loan repayments, credit-card payments


Debashis Basu
While attempting to do an online transfer of funds, Randeep Arora, a retired army officer, found his account was frozen for “non-compliance” with Know Your Customer (KYC) norms. Despite having maintained a salary account, and later a pension account, with the bank for 30 years, and when the bank already has his Pension Payment Order, Aadhaar card, PAN card, etc on record, he was harassed by putting a freeze on his money without any prior intimation to update KYC details.

One evening when Irfan Khan went to purchase fuel, he discovered his debit card was blocked without any intimation to him.
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Jun 18 2023 | 10:26 PM IST

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