RBI Guidlines for Frozen Account

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