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Kotak Bank Froze My Account Without Notice & Forcing Me to Close It – Need Advice!

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SJM said:
Why through DC? Why not NEFT or IMPS? And to keep an account active you need to do only 1 transaction in 2 years.
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I have heard that it gave points was curious to find out so that's why I have tried to load via debit card that to in 2 consecutive days as kotak have 3 load per day, I don't think so loading via dc total 4 times in 2 years could have caused me this much problem also I told this to kotak cc that if this is why they have blocked me but they didn't have any specific reason,although I avoid using sbi debit cards because I have heard that they also block their debit cards,
 
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I would suggest to OP and others who want to do large imps/neft transactions or self transfers, plz visit any sbi/hdfc branch and open premium savings ac(if not possible then open regular or normal) and submit 2-3x of your income while opening the account.Usually HDFC,SBI don't freeze accounts which were opened offline by visiting branch.
 
First of all, savings accounts are meant to be used for savings purposes only. If you do lots of transactions on your savings account, the bank may freeze your account citing transaction patterns. I suggest everyone open an individual current account if you make lots of transactions.

Second thing, the bank's RCU (Risk Containment Unit) can take the decision, and generally, RBI won't interfere in this kind of matter, so escalating such cases won't help in most cases.

I agree nowadays bank account freeze is very common, but honestly, the majority of people make lots of credit and debit transactions using a savings account, or do lots of UPI transactions using a savings account.

What you can do to prevent such things:
  1. If your purpose is to make lots of transactions, open an individual current account. You don't need a business to open a current account, an individual can also open a current account. Or at least get a higher variant savings account.
  2. Avoid using digital or zero balance accounts for high-value transactions.
  3. Always declare your financial profile correctly. Sometimes people quote lower income while opening a bank account fearing tax-related issues, but such mistakes can create issues like account freeze, as you'll be doing a lot more transactions than your declared income.
  4. Update your profile (on the bank's file) from time to time.
If you still face any account freeze-related issue, you should work with your bank to identify the issue and try to resolve it. If your bank is not willing to unfreeze your account, close it and move to another bank or open a new account. And obviously, file a complaint against the bank if your local branch or their employees don't help you resolve the issue.
 
TechnoFino said:
First of all, savings accounts are meant to be used for savings purposes only. If you do lots of transactions on your savings account, the bank may freeze your account citing transaction patterns. I suggest everyone open an individual current account if you make lots of transactions.

Second thing, the bank's RCU (Risk Containment Unit) can take the decision, and generally, RBI won't interfere in this kind of matter, so escalating such cases won't help in most cases.

I agree nowadays bank account freeze is very common, but honestly, the majority of people make lots of credit and debit transactions using a savings account, or do lots of UPI transactions using a savings account.

What you can do to prevent such things:
  1. If your purpose is to make lots of transactions, open an individual current account. You don't need a business to open a current account, an individual can also open a current account. Or at least get a higher variant savings account.
  2. Avoid using digital or zero balance accounts for high-value transactions.
  3. Always declare your financial profile correctly. Sometimes people quote lower income while opening a bank account fearing tax-related issues, but such mistakes can create issues like account freeze, as you'll be doing a lot more transactions than your declared income.
  4. Update your profile (on the bank's file) from time to time.
If you still face any account freeze-related issue, you should work with your bank to identify the issue and try to resolve it. If your bank is not willing to unfreeze your account, close it and move to another bank or open a new account. And obviously, file a complaint against the bank if your local branch or their employees don't help you resolve the issue.
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+
How to prevent lots of UPI transactions using a savings account?

By using following methods to pay local merchants:
CC on UPI,
UPI Lite (revised limit is 1k/txn, auto top-up is also available so convenient as well),
UPI Wallet, etc.

The above, will also make your statement clutter free.

And choose other payments mode if available, especially credit card.

For fund transfer better to use:
IMPS, NEFT & RTGS instead of UPI every now & then.

Avoid: Same amount Dr. couple of times within short period of time, same amount Dr. & Cr quickly.
Must: High income profile (justifiable if questioned) & reasonable occupation as already said.

P.S: If possible and convenient always prefer physical KYC via branch using any means including digital one like TAB, their computer, physical form, etc. instead of V-KYC. And, start slowly and gradually with the frequency and materiality of txns to make the algorithm familiar.
 
Last edited:
TechnoFino said:
First of all, savings accounts are meant to be used for savings purposes only. If you do lots of transactions on your savings account, the bank may freeze your account citing transaction patterns. I suggest everyone open an individual current account if you make lots of transactions.

Second thing, the bank's RCU (Risk Containment Unit) can take the decision, and generally, RBI won't interfere in this kind of matter, so escalating such cases won't help in most cases.

I agree nowadays bank account freeze is very common, but honestly, the majority of people make lots of credit and debit transactions using a savings account, or do lots of UPI transactions using a savings account.

What you can do to prevent such things:
  1. If your purpose is to make lots of transactions, open an individual current account. You don't need a business to open a current account, an individual can also open a current account. Or at least get a higher variant savings account.
  2. Avoid using digital or zero balance accounts for high-value transactions.
  3. Always declare your financial profile correctly. Sometimes people quote lower income while opening a bank account fearing tax-related issues, but such mistakes can create issues like account freeze, as you'll be doing a lot more transactions than your declared income.
  4. Update your profile (on the bank's file) from time to time.
If you still face any account freeze-related issue, you should work with your bank to identify the issue and try to resolve it. If your bank is not willing to unfreeze your account, close it and move to another bank or open a new account. And obviously, file a complaint against the bank if your local branch or their employees don't help you resolve the issue.
Click to expand...

Aniket said:
+
How to prevent lots of UPI transactions using a savings account?

By using following methods to pay local merchants:
CC on UPI,
UPI Lite (revised limit is 1k/txn, auto top-up is also available so convenient as well),
UPI Wallet, etc.

The above, will also make your statement clutter free.

And choose other payments mode if available, especially credit card.

For fund transfer better to use:
NEFT, IMPS & RTGS instead of UPI every now & then.

Avoid: Same amount Dr. couple of times within short period of time, same amount Dr. & Cr quickly.
Must: High income profile & reasonable occupation as already said.

P.S: If possible and convenient always prefer physical KYC via branch using any means including digital one like TAB, their computer, physical form, etc. instead of V-KYC. And, start slowly and gradually with the frequency and materiality of txns to make the algorithm familiar.
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+1,
But...🤑😭
Thread 'Over CashBack - Account Flood' https://www.technofino.in/community/threads/over-cashback-account-flood.38102/
 
Aniket said:
Lucky: Cashback ko mana nahi karte, all good. 😅

Or better make your primary/ default account; payments bank or some other mostly for UPI.
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They (BHIM) already know stock market is down, (so no 🍻 🥃 )at least give them (Poor Man) some peanuts so that they can enjoy time being.
 
Even I also got an email from ICICI salary account. They are asking to open current account and given 30 days time. Though transaction are online transfers and no cash deposits. Not sure why they are doing like this? Not even a notification received earlier but direct account closure email with 30 days of notice. Operating a saving bank account also tricky nowadays. Hope RBI should do something about this. For on-line transactions not sure what do they have any problem with.
 
praveeng said:
Even I also got an email from ICICI salary account. They are asking to open current account and given 30 days time. Though transaction are online transfers and no cash deposits. Not sure why they are doing like this? Not even a notification received earlier but direct account closure email with 30 days of notice. Operating a saving bank account also tricky nowadays. Hope RBI should do something about this. For on-line transactions not sure what do they have any problem with.
Click to expand...
Can you share more details? How many UPI transactions and total transaction value.
 
syed_ar0403 said:
I’m facing an extremely frustrating issue with Kotak Mahindra Bank, and I need advice from the community. My savings account has been completely frozen under the reason "TXN PATTERN ANOMALY." But despite multiple attempts, Kotak has refused to provide any clear explanation or a fair resolution. Instead, they are forcing me to close my account and open a new one with a ₹10,000 minimum balance.

How It Started:​

  • My account was suddenly frozen without any prior notice or chance to justify my transactions.
  • I contacted customer care, raised complaints via the National Consumer Helpline (NCH) and even escalated to the RBI Ombudsman.
  • Every complaint gets routed back to the branch, where the staff are rude, unhelpful, and unwilling to assist.
  • The branch has finalized their decision not to unfreeze my account, as confirmed by the RCU Team.

Kotak's Response? Absolutely Nothing.​

  • They refuse to give me a written explanation about why my transactions were flagged.
  • They ignore my requests to provide a copy of the bank's policy that mandates account closure instead of issue resolution.
  • Despite multiple calls and emails, all I get is the same response – "visit the branch" – but the branch only pushes for account closure.

My Demands (Which They Keep Ignoring!):​

  1. A clear written explanation for the freeze & flagged transactions.
  2. A reason why I wasn’t given a chance to justify my transactions before freezing my account.
  3. A copy of Kotak's policy that supports their decision to force account closure.
  4. Compensation for the mental stress, inconvenience, and financial impact of this unfair freeze.

How Can Banks Just Do This Without Any Justification?​

I have a clean financial record, and I comply with all banking norms. Yet, Kotak has made an arbitrary decision to block my account without even letting me defend myself.

I have already escalated this to the RBI Ombudsman and NCH, but the bank keeps delaying or avoiding accountability.

🔹 Has anyone else faced this issue with Kotak or any other bank?
🔹 What legal or regulatory steps can I take to make Kotak provide a clear answer and unfreeze my account?
🔹 Should I take this to consumer court?

I would really appreciate any advice or similar experiences. Banks shouldn’t be able to freeze people’s accounts without transparency or justification. This is a serious issue that needs attention! 🚨

Edit : Issue Summary:
My Kotak 811 account was suddenly frozen without prior notice or a proper explanation. I was informed that the matter was escalated to the Risk Controlling Unit (RCU), which later stated that my account cannot be unblocked due to "TXN PATTERN ANOMALY." Despite explaining that most transactions were self-transfers, the bank insists I close the account instead of resolving the issue.
Timeline of Events:
🔹 10-02-2025: Registered a complaint on Kotak Bank’s portal; received an SMS to unblock my account, submitted the request, and completed DigiLocker KYC.
🔹 11-02-2025: Received a call confirming my account would be unblocked soon.
🔹 12-02-2025: Physical verification was done at my address.
🔹 15-02-2025: Kotak Bank stated my concern was forwarded for urgent review, but no update followed.
🔹 19-02-2025: Due to no response, I escalated to the Nodal Officer.
🔹 23-02-2025: Customer care insisted my concern was forwarded and advised me to visit the branch.
🔹 25-02-2025: Received a response from Grievance Team stating my account is in a "Total Freeze" due to "TXN PATTERN ANOMALY." Asked to visit a branch for re-profiling.
🔹 27-02-2025: Visited the branch; they escalated the issue to the RCU team.
🔹 02-03-2025: Received an email saying my account freeze issue was being reviewed and expected resolution by 07-03-2025.
🔹 05-03-2025: Final response from the Grievance team: "RCU has denied unfreezing the account. Kindly submit an account closure request."
🔹 06-03-2025: Branch gave the same response, insisting on account closure.
🔹 10-03-2025: Registered a complaint with the RBI Ombudsman.
🔹 12-03-2025: Received an SMS instructing me to submit information for unblocking, but the request was already under review. Also got a call from the Nodal Officer.
🔹 15-03-2025: Received a call from the Operational Manager of my branch:
  • Informed me that the backend team was not satisfied with my transaction pattern, and the branch team also failed to convince them.
  • Refused to provide a clear explanation regarding my transactions, despite my willingness to clarify that they involved mutual financial obligations and family transactions.
  • Stated that Kotak Bank does not notify customers about suspicious transactions before blocking an account and confirmed that the decision to permanently block my account is final.
  • Refused any further review and insisted that I close my account and open a new one with a ₹10,000 minimum balance, which I strongly disagreed with.
  • Dismissed my escalation attempts, stating that any further complaints would be routed back to the same branch and that their decision would remain unchanged.
🔹 15-03-2025: Escalated the issue to NCH.
🔹 18-03-2025: The case was transferred back to the branch. The Operational Manager called again and reiterated that unfreezing the account was not possible. He attempted to pressure me into closing the account, arguing that no matter how many escalations I make, all of them would be routed back to the branch, and their final decision would remain unchanged.

Transaction Summary:
Most transactions were self-transfers. The freeze was applied even though there were no unusual activities.

View attachment 87303

What Should Be My Next Step?
Should I escalate further or take legal action against Kotak for unjustified account freezing and lack of resolution?
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My account is freeze since 8 month, they are worst bank never unfreeze your account 50 k still in account, now they advised to close the account, I will soon there to close
 
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