Is it true that we shouldn't transact more than five times a month in a savings bank account? (2024)

ashwink said:

What is the average transaction value of each?

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You mean, the average transaction value for the money only from my mother and my friends, right? Because the amount from my own ICICI to Axis shouldn't matter.

rj_arora said:

You mean, the average transaction value for the money only from my mother and my friends, right? Because the amount from my own ICICI to Axis shouldn't matter.

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All . .

From this FY 2023-24, every IT Return Filer has to DECLARE DETAILS OF ALL HIS BANK ACCOUNTS. This year's revised ITR forms have made it mandatory.

Probably, the ITD already has these details of ALL OUR ACCOUNTS. The ITD is trying to test our sincerity n openness - whether we will declare all info of all accounts or not - that is being tested Now.

So, better follow the guidelines n play safe.

READ and FOLLOW them carefully.

rj_arora said:

Guys, I had a terrible experience today at Axis Bank. They blocked my savings account three days ago. Credit is allowed, but I can't debit any money. I went to the branch today to confront them, and the manager told me this -

Allegation 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month.
My view: this is the first time I've heard about this five transaction limit a month. I mean, how is it possible that the government is promoting digitisation and at the same time limiting people to use their savings account only five times a month? Isn't it weird?

Allegation 2: the manager was asking me how I was getting money credited to my account so many times. I clearly told him that I had transferred the money from my own ICICI account to my Axis account many times and then transferred it to my own Zerodha/Paytm money as I had linked My axis account to broker. Also, my mother and my friends sent me money totalling 4-5 times the previous month, and 3-4 were miscellaneous credits. But he was trying to scare me by saying that I was speaking so much in front of him, but I wouldn't be able to utter a single word against the income tax department.
My view: what has the income tax department got to do with this? I mean, is it illegal to take money from friends? And all of this is white money. They are transferring the money from their bank account to my bank account, right? It's not even cash. How did the income tax department come into the picture? I have no idea. There are a total of 73 debits + credits in my account. I don't know how high it is.

Now, to resolve this, he's asking me to write on a page that I will use my savings account less frequently in the future, and I won't repeat this behaviour when I am doing multiple transactions in my account. Also, he is asking me to write the purpose of the credits in my account and why the money was credited from my friends and from my mother to my account.
What do you guys think I should do here? Has anyone els n7e faced this before?

cc: @TechnoFino @Subhankar @ashwink @S S V @4uziaul @007 @alphadark7 @bhavyegoel

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There's nothing like such restriction in any savings account.
The manager is just trying to scare you, and make you get a current account. ITD won't say a thing if your income is reported and have proof of transactions. It is not at all illegal to take money from friends. If the money received is like loan, then no worries. If it is gift and more than 50k in a year, then it needs to reported to them.

Get your account unfreezed and transfer your account to some other branch. This branch seems to be notorious.

rj_arora said:

Guys, I had a terrible experience today at Axis Bank. They blocked my savings account three days ago. Credit is allowed, but I can't debit any money. I went to the branch today to confront them, and the manager told me this -

Allegation 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month.
My view: this is the first time I've heard about this five transaction limit a month. I mean, how is it possible that the government is promoting digitisation and at the same time limiting people to use their savings account only five times a month? Isn't it weird?

Allegation 2: the manager was asking me how I was getting money credited to my account so many times. I clearly told him that I had transferred the money from my own ICICI account to my Axis account many times and then transferred it to my own Zerodha/Paytm money as I had linked My axis account to broker. Also, my mother and my friends sent me money totalling 4-5 times the previous month, and 3-4 were miscellaneous credits. But he was trying to scare me by saying that I was speaking so much in front of him, but I wouldn't be able to utter a single word against the income tax department.
My view: what has the income tax department got to do with this? I mean, is it illegal to take money from friends? And all of this is white money. They are transferring the money from their bank account to my bank account, right? It's not even cash. How did the income tax department come into the picture? I have no idea. There are a total of 73 debits + credits in my account. I don't know how high it is.

Now, to resolve this, he's asking me to write on a page that I will use my savings account less frequently in the future, and I won't repeat this behaviour when I am doing multiple transactions in my account. Also, he is asking me to write the purpose of the credits in my account and why the money was credited from my friends and from my mother to my account.
What do you guys think I should do here? Has anyone else faced this before?

cc: @TechnoFino @Subhankar @ashwink @S S V @4uziaul @007 @alphadark7 @bhavyegoel

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First thing first. Ask him to give the exact reasons why your account is blocked IN WRITTEN. They cannot stop you from transacting in your own bank account, even if it is savings bank account. At the most what they can do is that beyond a set number of transactions, they can charge you per transaction.

Secondly, don't be afraid if you haven't done anything wrong such as rotation of money between credit card and bank account. If you get any notice from IT department also, it is between you and the department, the bank is not a party to it.

RAMESH BABU N said:

From this FY 2023-24, every IT Return Filer has to DECLARE DETAILS OF ALL HIS BANK ACCOUNTS. This year's revised ITR forms have made it mandatory.

Probably, the ITD already has these details of ALL OUR ACCOUNTS. The ITD is trying to test our sincerity n openness - whether we will declare all info of all accounts or not - that is being tested Now.

So, better follow the guidelines n play safe.

READ and FOLLOW them carefully.

Click to expand...

Everything from my side is declared in the ITR. All bank accounts, all incomes etc. Nothing is fishy/illegal here, sir. I can assure you that

rj_arora said:

What do you guys think I should do here? Has anyone else faced this before?

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Complaint to NO and PNO about the unprofessional behavior of the BM. Go to the branch again but this time secretly record the whole convo. Just keep pestering him about this and that and record him talking out of his ass. Then share that on twitter with axis bank.

There are no such restrictions on savings account till now in India.

The BM is on a power trip and that's why he is asking this stupid thing of writing a letter. Real life is not a movie, that letter won't stand anywhere outside of proving that he is behaving unprofessionally.

sid16 said:

First thing first. Ask him to give the exact reasons why your account is blocked IN WRITTEN. They cannot stop you from transacting in your own bank account, even if it is savings bank account. At the most what they can do is that beyond a set number of transactions, they can charge you per transaction.

Secondly, don't be afraid if you haven't done anything wrong such as rotation of money between credit card and bank account. If you get any notice from IT department also, it is between you and the department, the bank is not a party to it.

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No rotation between CC/Account for sure. I mainly used the money to invest, which I will return to them next month. That's it.

ashwink said:

All . .

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updated the post bro.
CC: @quino

Just checked there is total 1000+ transaction in statement my account is opened on 30/06/2023

If I am not wrong there was a thread on dd where a person got mail form ICICI bank for doing a lot of transaction
@Abhishek012

Pankhuri said:

Complaint to NO and PNO about the unprofessional behavior of the BM. Go to the branch again but this time secretly record the whole convo. Just keep pestering him about this and that and record him talking out of his ass. Then share that on twitter with axis bank.

There are no such restrictions on savings account till now in India.

The BM is on a power trip and that's why he is asking this stupid thing of writing a letter. Real life is not a movie, that letter won't stand anywhere outside of proving that he is behaving unprofessionally.

Click to expand...

I mainly used to money to invest, which I will return to my friends next month. That's it.
Which higher authorities should I contact?

Pankhuri said:

Gaand maar bhosadi waale ki.

Complaint to NO and PNO about the unprofessional behavior of the BM. Go to the branch again but this time secretly record the whole convo. Just keep pestering him about this and that and record him talking out of his ass. Then share that on twitter with axis bank.

There are no such restrictions on savings account till now in India.

The BM is on a power trip and that's why he is asking this stupid thing of writing a letter. Real life is not a movie, that letter won't stand anywhere outside of proving that he is behaving unprofessionally.

Click to expand...

He is right
I have never saw any such type of rule
Even I am having 10+ accounts and doing transaction of even 1-2 rs from UPI

How come a bank restricts from doing transaction

rj_arora said:

No rotation between CC/Account for sure. I mainly used to money to invest, which I will return to them next month. That's it.

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Bro don't be afraid first of all. No one can touch your money. Write an email to him with CC to PNO and RBI Ombudsman, telling him that your account is frozen and you want it to be released immediately. From my understanding, there could be a debit freeze because of pending KYC. The BM seems to be drunk on power. I am quite sure that when you write this email, he will get back to you citing KYC pending or something technical like that.

rj_arora said:

I mainly used to money to invest, which I will return to my friends next month. That's it.
Which higher authorities should I contact?

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Start with NO, escalate to PNO and RBI BO if needed.

But do have solid evidence ready, so pay another visit to asshole and record his behavior. If you are vindictive, can get those cheap pen cameras to record the video, otherwise just recording voice on mobile would be suffice.

Also, it is none of your bank's business whether you received money from friends or family or some stranger. Their job is to process transactions, that's it.