What is meant by Lien amount in SBI? A lien amount in SBI means the amount that the bank has put a hold on it. The amount that is frozen and you cannot withdraw or use those funds until the lien is removed. The bank may apply a lien on a specific amount in one account or on the entire account.
Why does the bank puts the lien amount?
The bank puts the lien amount to secure the funds for several reasons:
1) Failure to meet minimum balance requirements:
The customer has to maintain a minimum balance in almost every banks. Banks charge a fine for not maintaining the minimum balance. If your account balance is less than the minimum required balance, the bank will charge you the penalty and automatically deduct the charge from your account. But if your account doesn’t have enough balance to cover the fine, the bank may place a lien on your account of that amount.
2) Default on the EMI loan:
If you were unable to repay the EMI of a loan, the bank can put a lien on the funds in the account of the same bank.
3) Fixed deposits as collateral for loans:
If you deposited the FD as collateral against a loan, you cannot withdraw the amount of the FD under any circumstances as the bank marked it as the amount of the lien.
3) Issue with Draft or Cheque deposited by you:
The bank can put a lien on a account If there is a problem with a Draft or Cheque in the account.The bank may put the amount in lien until it is resolved.
4) Error generated by the bank software :
The error of the lien amount may appear due to the bank software. In such case, the error will be resolved automatically.
5) Suspected illegal activity:
If the bank discovers any illegal activity on the account, it can freeze the account or it can put a lien on a specific amount. The bank can put a lien also if you don’t pay taxes.
Also read: What is SBI Rewardz points?
How to solve the Lien amount in SBI?
If you don’t pay your bank fees, the bank will not remove the lien. After paying your bank dues, you can withdraw the amount or use your fund.
To solve the issue of lien amount you have to visit the SBI branch or your Bank branch & ask about the procedure to solve this issue. Also, you can call your Customer Care to know about the procedure to resolve the issue.