You must know what a likeness mark means if you see the lien amount or effect in your State Bank of India account or any other bank account. Every person should be aware of such essential and standard terms banks use.
And if you do not know what a lien is in banking, we will do some help here to help you understand what this lien is and the likeness mark in your bank account.
What is the Lien Amount?
A lien is a lock, or the word “lien” refers to a lock held in your account by a bank. The lien amount is a specific limit determined and locked by the bank authorities for a limited period.
When the bank freezes the amount in your account, you cannot make transactions such as withdrawing it or using it anywhere until the bank removes the lock from your account. The bank has full rights and power to lock the account’s balance and make it a temporary amount.
What is Lien Marked?
The lien means that if the borrower does not repay the extended credit as agreed by the borrower, the borrower is allowed to take possession of the mutual fund to recover the money owed.
Loans on mutual funds are used as lender security by a temporary mark placed on the mutual fund units.
What is the Lien in SBI?
The lien of SBI or any other bank prevents you from withdrawing or using the funds specified in your bank account without the bank’s approval or the relevant authority. The bank may impose a lien directly or through a power such as a court or a tribunal.
On the other hand, lien rights are not always a concern. The following section examines the various reasons for lien in SBI.
IPO Application Using ASBA:
SEBI amended the Terms a few years ago if you apply for an IPO using your SBI Bank Account. In this case, no funds will be left out of your account until the allocation is confirmed.
When you apply for an IPO, your money will be kept lean until the actual allotment (or blocked). If you get an allocation, the funds will go to the company. If you do not receive the percentage, the lien will revoke.
Virtual Debit Card:
SBI, like many different banks, offers virtual debit cards. Online transactions are secure with these virtual cards. It is similar to physical cards, only used for online transactions and has a limited lifespan. SBI reserves the right to every amount you create a virtual card.
They will only charge money if you use your virtual card to make a purchase. The lien will revoke if you do not use the card for 48 hours. If you have created a virtual card without needing it, click “Cancel Virtual Card” to remove the liens.
Non-payment of credit card Dues:
If you do not pay your credit card dues, the bank may impose a lien on your account.
A lien by the tax department:
If the IRS believes you must pay taxes, it may place the lien on your bank account. However, it must follow legal processes to obtain a lien.
A technical error or human error in the underlying software may result in the suspension of your account. To remove a lien amount, contact customer service or the branch.
Reasons to Lock Bank Accounts:
There can be thousands of reasons to lock a bank customer’s account by making it a lien account and recognizing it. Some important reasons:
- Every bank has specific terms and conditions to maintain a minimum balance.
- If the client fails to do so, he may be fined an appropriate amount for non-maintenance. The bank will automatically deduct these charges and place a lien on the bank account when the amount in the report does not match.
- When the account user fails to repay the EMI or loan promptly, the bank may place a lien equivalent to the amount on the account.
- If the bank finds any issues with the checks or drafts, the bank may impose a lien on that account.
- If banks detect any suspicious activity in the bank account, they may freeze your account and impose a lien on the account.
- However, the bank may impose a lien on your account if you fail to pay taxes.
- If you deposit FD as security for the loan, you cannot withdraw any amount from the FD by locking the bank or recognizing that FD amount as a temporary amount.
- It can cause credit card dues.
How to remove the Lien Amount from SBI Online?
- Although removing a lien in SBI varies due to the addition of lien marking to your account, I will explain how to clear the lien in SBI.
- Understanding the cause of the lien amount in SBI will help us plan the following steps to remove the lien amount in SBI.
- If your account is blocked due to ASBA and you wish to revoke the lien immediately, you must submit a withdrawal request to the Registrar of IPOs.
- If you can wait, It will remove the lien if you do not receive the IPO assignment. As a result, they will cancel your request and direct the SCSB (Self-Certified Syndicate Bank) to release your funds.
- If the lien results from a virtual card, you can delete the card, and the lien will revoke immediately. The card passed in 48 hours, and the lien was automatically withdrawn.
- If you have a lien on your fixed deposit for your credit card, you can arrange the terms with the bank or revoke the card.
- In all other cases, due to non-payment of lien taxes, fees, outstanding loans, etc., you must repay them, including interest, to remove the lien.
- After completing the necessary procedures, the lien will be removed from your bank account.
- If you are not confident, contact your bank, and the bank will explain why they have set a lien on your bank account and how you can determine it if relevant.
Lien Amount due to IPO SBI:
- That bank will not normalize your account unless you settle all of your bank dues. Until then, you will not be capable of making any transactions, such as withdrawing the amount or issuing checks; If you do, it will bounce.
- After you pay all the dues at the SBI branch, the bank will remove the lien mark from your amount or account.
- It would help if you visited the branch to eliminate this problem and ask about the whole process. It’s the best idea to make it easy.
- You can also get help by calling the Bank Customer Care Helpline and inquiring about the problem.
- They will help you, but always remember that you cannot deduct a temporary amount from your account without settling the outstanding payments of your account.
How to unlock the Lien Amount in SBI?
- Suppose the bank keeps the bank lien amount marked in your account due to any minor or system error. You can approach the bank branch and ask them to resolve the issue and ask about it.
- The bank will be pleased to help you as soon as feasible. And the bank will remove the problems and the temporary amount mark from your account.
- It is inappropriate for any customer or bank in SBI or another bank to identify their account as a provisional amount. It will interfere with the transaction from the specified account.
- And suppose you fail to pay the acceptable amount from the specified amount. If another is in your account from the same bank, it will be automatically deducted. And it helps in the drainage of money.
- Suppose you consider depositing money in your account as a protection deposit against any fixed deposits from the detailed report.
- In that case, you need to ensure that the bank does not recognize your account or amount as a temporary account or as a whole.
- And as you already know, the bank has all the rights and powers to recognize any account. And amount as a lien, so you should not violate any bank laws and should not bother. As they say, “Precaution is always better than cure.”
Lien is generally applied to recover any charges due in the account or in case a temporary credit had posted in your account against Fraud/Dispute raised in the report.
In simple words, Lien Amount stands for Lock Amount. Users can’t withdraw money from the locked amount until the State Bank of India removes the Lien or Lock from that bank account.
The term lien indicates a legal claim or legal right made against the assets held as collateral for satisfying a debt. A creditor or a legal judgement can establish a lien.
You don’t have any access to run your account, and the bank will be locked your account.
The easiest way to remove the lien amount is to rectify the problem by contacting the bank executive or clearing the dues.