Bank savings accounts are a crucial part of your financial management. You may open a new bank account to park your surplus funds, which you can access in times of financial emergencies or monetary shortfalls. Note that the balance you deposit allows you to earn bank interest on savings accounts. However, if for any reason your bank account is frozen, then it may be a big problem for you. A frozen bank account stops you from making any transactions through the online mode. Also, such accounts do not allow you to use your bank cheques.
Here Are Some Reasons Why Your Bank May Freeze Your Account.
1.Failure to Repay Your Loan Dues on Time
If you fail to repay your loan dues despite several reminders, then your bank may freeze your bank account. For instance, when you owe a huge amount of funds to the bank with whom you also hold a savings account, then the account may be blocked until you repay the loan outstanding in full.
2.Suspicious Activity
This is another reason for your account to be frozen. For instance, if your bank notices a massive amount being transacted from any unrelated party, then your bank may freeze your bank account until you give approval. Note that banks act this way to secure your account against suspicious activities. Also, in case you witness any unusual transaction, you can request your bank to freeze your account.
3. Inactivity
If there is no activity in your bank account for over two years, which includes failure to maintain the savings account minimum balance, then your bank may treat your account as dormant or inoperative and freeze it.
4.NonPayment of Taxes
At times, you may default on paying your taxes and fines that you owe to the government. In such a scenario, the government may order your bank to freeze your bank account.
5.Demise of the Account Holder
On the demise of the bank account holder, the account may be frozen if the holder has no direct inheritor.
How Can You Unfreeze Your Bank Account?
There is no specified period for which your bank has to keep your savings account frozen. Thus, banks may be ready to activate or unfreeze your account if you follow a prescribed process set by them and meet the conditions as mandated by the bank.
For instance, if your bank account was frozen owing to loan repayment default, then after making the repayment you may request for activation of your bank account. In contrast, suppose your bank froze your account because of any suspicious activity, then they may unfreeze it once you confirm the authenticity of the transaction. However, in the case your bank account is frozen because of the government order, then the bank may not unfreeze until the government says so.
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