How Can I Resolve My Frozen Bank Account Issue and Retrieve My Remaining Balance?

I have a savings account with XXX Bank in Bangalore, Bannerghatta Road branch (no. YYYYY), and it has been frozen since September 2014. In 2014, I was working at a real estate firm. In the last month, August, I received my profits in this account. Unfortunately, a friend of mine betrayed my trust. He took my ATM card, claiming he needed it to go to Delhi to work on our franchise and required some money. I gave him my XXX Bank ATM card, where the commission was supposed to be credited. When our client made deposits into my account from August 28, 2014, to September 1, 2014, totaling more than 2 lakh, my friend withdrew all the money without my consent or knowledge.

Upon checking my registered email ID, I discovered that all the deposited amounts had been immediately withdrawn. I contacted XXX Bank customer care and blocked my ATM card. Even after blocking the card, our client made another deposit of 43,000 (18,000, 12,000, 13,000), which my friend could not withdraw due to the block. In response, he falsely reported two deposits (18,000 and 12,000) as fraudulent, convincing my client that I had lost his money. When I tried to get a new debit card from XXX Bank, I was informed that my account was frozen due to same-day deposit and withdrawal transactions.

After lodging a complaint with XXX customer care and submitting the required documents regarding the source of credit and nature of transactions, my base branch initially promised to unfreeze my account within 3-4 days. However, two days later, they informed me that the documents provided were insufficient. They decided to close my savings account, instructing me to collect the remaining balance through a closing account letter. Yet, upon visiting the branch to collect my balance, I was informed that they were unable to close the account at that time.

I simply wish to close my account to collect my remaining balance. Your assistance would be greatly appreciated.

Actions to Take Regarding Suspicious Transactions

Have you initiated any action against your friend who conducted multiple transactions on your account? The bank is obviously suspicious of the transactions occurring. Was the 2 lakh deposit in cash? The bank may have reported the matter to the Financial Intelligence Unit as a suspicious transaction. You have a lot of explanations to provide. Are these figures reflected in your IT returns?

When dealing with a bank account, there are no friendships, and handing over an ATM card was wrong and has put you under suspicion. You will have to first deal with your friend, and only then will the bank allow the closure of the account, or all the responsibility for transactions will fall on you. Please seek proper advice, review each transaction, and have an explanation ready for the source and purpose of funds deposited/withdrawn.

Dear Raju,

Your entire problem has arisen because of handing over the debit card to an unauthorized person. Banks issue these cards for individual use, and these are non-transferable. How come you forgot this basic banking requirement?

Closure or continuation of the account is not important. What is important is that you get your own money after deducting the bank's fees. Continue visiting the bank and convince them to issue a check for the balance.

Thanks,
Dinesh Divekar

Protecting Personal Bank Account Information

First of all, your bank account details are your personal property, like your ATM/debit card. You should not disclose the bank account details (number & branch name) on a public forum like this. (Not that it matters now, as the account is frozen anyway!) But please make it a habit to keep these details in restricted distribution and be very cautious when anybody asks for these details.

You have a registered email ID with the bank. How come you do not have mobile alerts for withdrawals? Set it up when your account is unfrozen.

Understanding Bank Documentation Requirements

When you say "Documentation provided for SOURCE OF CREDIT and NATURE OF TRANSACTION was not enough for the bank," what does it really mean? Did they ask for any further documentation? Was the transaction 'illegal' in terms of the bank's views?

Addressing False Deposit Complaints

Secondly, how can your friend make a "false deposit complaint" for the account which is neither his account, nor is he the depositor of the amount? Even if he convinced your client that you have lost money, that was your profit, so why would the client care? Even if he did, did he not verify this fact with you before complaining that the deposit was false? (What does it mean by a false deposit anyway?)

Clarifying Same-Day Transactions

Same-day deposits and withdrawals are not illegal, especially for small amounts like 18,000 or 12,000 INR. They are suspicious if they are recurring very frequently. This generally happens in a current account and not a savings account. If you are conducting business transactions on a savings account, then it is wrong anyway. But if you have proper documentation for the profit (commission?), then you should be free to withdraw the amount on the same day.

Steps to Unfreeze a Bank Account

Freezing an account is a big step, and a simple application from you should be able to unfreeze it. I think the bank can report the transaction irregularities but cannot keep the account frozen for such a reason.

If they are insisting on keeping the account frozen, then either:

1. There is a bigger background to this matter, which is not fully disclosed here. OR

2. Your pursuit with the bank is not strong enough.

Request the bank that you would open a current account for your business with them, and would justify the transactions to date with the proper IT authorities on your savings account, and they may unfreeze it for you quickly.

Best Regards,

Amod Bobade.

Sir, please send the bank a notice regarding the deficiency of service if they do not pay the balance despite the request to close the account.

Filing a Complaint with the Bank

Ask the bank manager to give you a complaints book and write your complaint. It is totally wrong on the part of the bank/branch not to close the account after having written to you that they will close the account in 3-4 days. A copy of the complaint goes automatically to the Banking Ombudsman, who is bound to initiate action against the bank after hearing both parties.

Legal Action for Lost Money

As for your money that has already been lost (after you gave your ATM card to your friend), you can only file a suit against your friend (civil or criminal, as advised by your lawyer).

Regards,
A. S. Bhat