Have you ever been in a situation where you go to your bank’s ATM to withdraw cash but are denied this service? It is easy to panic in such a situation, but it is important to stay calm and understand the issue at hand. You may be experiencing a freeze account situation, which can happen due to a technical issue. However, at times, it can be something more serious.
Freeze account meaning
When your Savings Account is frozen, it means that you are unable to withdraw funds from your account via the ATM or chequebook. You will be unable to transfer funds from or into your account. You will also be unable to leverage your Debit Card to make purchases from your account.
These restrictions can bring all financial transactions to a halt, making it challenging to go about your daily financial activities. The first logical step is to identify the reasons for the freeze account situation and take the necessary steps to rectify it.
Also Read :Savings Account uses you might not know about
Bank account freeze rules
There are several reasons why your bank account may be frozen. Here is a snapshot of bank account freeze rules you must be aware of when navigating the issue -
- Your Know Your Customer (KYC) information might be incomplete
- The bank may have received a request from a central authority to freeze the account due to issues such as unpaid taxes or unlawful activities
- The bank may have frozen the account due to non-payment of dues on time
- Suspicious financial activity may have been observed in your bank account
- A court order may have directed the bank to freeze your account
Also Read :10 benefits of opening an Axis Bank Digital Savings Account
Steps to address a frozen bank account
1. Contact your bank
When you discover that your bank account is frozen, the first step is to contact your bank. You can either do so via phone banking, email, or a chatbot. Alternatively, you can visit the nearest bank branch and discuss the issue with the Bank Manager.
2. Address the issue
Once you are aware of the reason for your account being frozen, you can address the issue. For instance, if the KYC is incomplete, you can furnish details and unfreeze the account. If you owe money to your bank due to credit amassed, you can discuss a payment plan that works for both parties.
3. Seek legal advice
Not all issues have such a straightforward solution. For instance, if you have been falsely accused of illegal activity, you may need to seek legal counsel to understand your options and proceed accordingly. Ensure that you are in touch with your bank to resolve the issue.
In conclusion
It is important to stash your savings with a credible bank that enables secure, seamless and hassle-free banking. Axis Bank Savings Accountsoffer a superior digital banking experience and swift customer support during any crisis. You can benefit from the paperless onboarding process, video KYC, and perks such as reward points, exclusive deals and insurance coverage.
Also Read :6 things to consider before opening a Savings Account
Make sure to update your KYC, maintain a positive fund balance, and pay off loan debt on time to enjoy an uninterrupted and seamless banking experience. In case of bank account freeze experiences, stay calm and contact your bank to understand the issue and have it resolved as soon as possible.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
FAQs
Resolve the issue
What can I do to unfreeze my bank account? ›
Alternatively, you can visit the nearest bank branch and discuss the issue with the Bank Manager. Once you are aware of the reason for your account being frozen, you can address the issue. For instance, if the KYC is incomplete, you can furnish details and unfreeze the account.
How long can a bank legally freeze your account? ›
There is no set amount of time that an account may be frozen. Freezes are usually lifted once the account holder satisfies the conditions that led to the freeze. When a bank account is frozen, it may be because of money owed to another individual or business.
How do I get my money back from a frozen account? ›
Quick Steps to Withdraw Money from a Frozen Account
- Contact Your Bank: Begin by reaching out to your bank. ...
- Seek Legal Guidance: If the freeze is legally related, consider seeking advice from a lawyer specializing in banking or financial law. ...
- Resolve the Underlying Issue: Address the root cause of the freeze.
Contact Your Bank
Usually, if there's a pre-authorization hold on your bank account due to a debit card transaction, calling your bank to verify that you made the purchase could fix the issue.
How do I get money out of a frozen bank account? ›
Contact Your Bank: Begin by reaching out to your bank. Understand the reason behind the account freeze. It could be due to various factors, such as insufficient funds, suspicious activity, or legal issues. and try asking them How to withdraw money from a frozen account.
Can banks legally freeze your account? ›
If a court judgement obliges the customer to pay a certain amount, the bank may freeze the account to enforce the judgement. Insolvency or bankruptcy. In case of insolvency or bankruptcy of the client, the bank may freeze the account to prevent further financial transactions.
How do I get my account unfrozen? ›
Steps to unfreeze your account
- Contact your bank. Calling your bank is usually the quickest way to find out why your account is frozen and what you can do to regain access.
- Resolve the issue. You may be able to have your issue resolved quickly, depending on your situation. ...
- Stop payments. ...
- Get legal advice, if needed.
For simpler situations or misunderstandings, usually, your account is frozen for seven to ten days. Complicated situations may require detailed information from you before the bank decides on the next course of action: to unfreeze or close the account entirely. This decision could take 30 days or more.
How do I unblock my bank account? ›
A saving account has many terms like frozen, block, stop, close, inoperative, dormant and all of them are different from each other. Most of these cases you have to visit the branch with your KYC documents (Aadhar, PAN) and have to do a transaction, after that your account will get start.
But in the meantime, if your account is frozen or might be, we recommend that you open a new bank account at a new bank where you don't owe any money. Notify your employer to deposit your paycheck into this new account. Move any money from your old account to your new account.
How can I get my money out of a locked bank account? ›
A court must approve and order any withdrawal of funds from a blocked account. The most common reason to petition a court to withdraw funds from a blocked account is to access a blocked account because the account was created for a minor who has subsequently turned 18.
What happens if you pay money into a frozen account? ›
Often, if a financial institution receives a request for transfer and doesn't have an account with a matching account number, or the account has been closed, the transfer will be declined. No money will be exchanged.
How do I get a bank to release my hold? ›
You can check your bank's hold policies (usually given to you when the account was opened and/or available on the bank's website) to see if you can wait it out. Or, you can contact the financial institution for more information about your situation and to request for the hold to be lifted.
Can you ask the bank to remove a hold? ›
In many cases, you won't be able to do anything about a hold. However, your bank needs to follow federal regulations and justify any holds in your account, so they can't keep you from your money forever. If things go on for too long, contact the U.S. Consumer Financial Protection Bureau (CFPB) and file a complaint.
How long can a bank legally hold your money? ›
The Federal Reserve says that a "reasonable" extended hold generally means one additional business day (total of two business days) for a bank's own checks and five additional business days (total of seven) for most other checks.
How much time will it take to unfreeze a bank account? ›
For simpler situations or misunderstandings, usually, your account is frozen for seven to ten days. Complicated situations may require detailed information from you before the bank decides on the next course of action: to unfreeze or close the account entirely. This decision could take 30 days or more.
How to withdraw money from a blocked account? ›
A court must approve and order any withdrawal of funds from a blocked account. The most common reason to petition a court to withdraw funds from a blocked account is to access a blocked account because the account was created for a minor who has subsequently turned 18.
How long does it take to unlock a bank account? ›
The time it takes for a bank branch to reply to an application to unblock a bank account can vary. It often depends on the bank's policies and procedures. Typically, you can expect a response within a few business days, but it could take longer in some cases.
