RBI Guidlines for Frozen Account
2 years ago
RBI guidelines RBI-2014-15-63 DBOD.No.Dir.BC. 5-13.03.00-2014-15 July 1, 2014 Ashadha 10, 1936 (Saka) told that
Banks are advised to follow the procedure detailed below in the case of Term Deposit Accounts of customers frozen by the orders of the enforcement authorities:
(i) A request letter may be obtained from the customer on maturity. While obtaining the request letter from the depositor for renewal, banks should also advise him to indicate the term for which the deposit is to be renewed. In case the depositor does not exercise his option of choosing the term for renewal, banks may renew the same for a term equal to the original term.
(ii) No new receipt is required to be issued. However, a suitable note should be made regarding renewal in the deposit ledger.
(iii) Renewal of deposit should be advised by registered letter- speed post - courier service to the concerned Government department under advice to the depositor. In the advice to the depositor, the rate of interest at which the deposit is renewed should also be mentioned.
(iv) If overdue period does not exceed 14 days on the date of receipt of the request letter, renewal should be done from the date of maturity. If it exceeds 14 days, banks should pay interest for the overdue period as per the policy adopted by them, and keep it in a separate interest free sub-account which should be released when the original fixed deposit is released.
If court give a direction to the bank that not give amount to the customer till further direction of court, then bank freeze the account of the customer and do not give amount to the customer till further direction of the court.
NOTE :- It not concerned with order of the magistrate or civil judge as per amount is concerned.
Q 1) Whether this freezed account ordered by court comes under FROZEN ACCOUNT
Q 2) As per RBI guidelines, bank issued advice letter to depositor to give request letter for renewal to court ordered freezed account also
Q 3) After getting request letter for renewal from depositor, can bank renew the court ordered freezed account
You may approach same Court for extension of period of frogging. Bank can renew the extension period only after getting court orders and not prior to it. You may approach banking ombudsman to redress your grievances.
Rate me Five Star*
2.Yes Bank MAY ( not mandatory) issue advice to depositor but will not seek request from the depositor
3. Bank will renew whether the customer provide the request for renewal or not.
From the points you have stated, nowhere you have mentioned that an adverse order of freezing the account has been passed by a competent court, hence it is hard to comment whether the account can be considered as a frozen account or not. Secondly, if the account is frozen as per the orders of the competent court, then the bank will not award/give the deposited amount to the customer. The deposit can be renewed for another term by the bank.
If you like my answer, please rate me.
Ayantika Mondal @ Prime Legal
Responded 2 years ago
You have not mentioned whether a order for freezing the bank account was passed by the judge or the magistrate, therefore it cannot be commented upon whether the account is an frozen account or not. You will have to provide with more details concerning the same. The bank can renew the original fixed deposit with the consent or without the consent of the customer, but the amount will not be given to the customer until further direction/order is issued by the magistrate/judge.
If you like my answer, please rate me.
Sbi account put on stop by cyber security
My bank account got freezed
Bank loan harassment
Online Gaming -Can I be sent to Jail
Online Gaming- Debit freeze
