Loan Default

Dear Sir,
The bankers cannot have access to the Salary account of your brother. You may ask your brother to approach higher bank officers or directly file a writ petition before High Court.

Dear Client,
According to the Reserve Bank of India (RBI), banks have the authority to freeze accounts without prior permission from the account holder in cases of legal judgments, suspected illegal activity, or clerical errors. However, as per law, Banks have a general lien on all the accounts and assets with the bank. If a personal loan is in default or due for repayment, the bank is within its right to keep a lien on the security charged for the other loans and can refuse to give an NOC/NDC until and unless the personal loan is cleared by the Loanee. Be informed that once a security is always a security and the bank may treat the hypothecated security for the present outstanding loan and the Bank may refuse to lift their charge of hypothecation on the pending loan. In the absence of the Court's order attaching your salary account, the Bank cannot freeze or attach your brother's salary account for non-payment of dues against a bank loan. However, you may escalate your grievance before the regulatory authority RBI online on its grievance redressal portal under the integrated Banking Ombudsman Scheme at https://cms.rbi.org.in for a quick resolution to the matter failing which, serving a legal notice to the Bank, you can also approach the Civil Court seeking appropriate relief in the matter.

Dear client,

As the secretary and authorized signatory of a current account held in the name of your residential society, the bank generally cannot freeze the account solely based on your personal defaults. However, if the bank suspects fraudulent activity or if there are legal actions against you that could affect the society’s funds, they may take precautionary measures to freeze the account. Regarding your credit card defaults with Axis and Citi, which have been merged, these issues can negatively impact your credit score and lead to further actions from the banks. Although your home loan with Axis, where your brother is a co-applicant, continues to have regular EMI payments, the ongoing defaults on other accounts may cause the bank to be more cautious. There is a possibility that Axis Bank may freeze your brother's salary account if they perceive a risk due to your financial situation. To mitigate these risks, it's advisable for both you and your brother to communicate with Axis Bank about the defaults and their potential impacts on your accounts. You can send them a notice asking the details of the same.