They don't freeze your account just to unfreeze it. There must be reason enough for the freezing. Just think, why will a bank want to lose a customer?
-
Hey there! Welcome to TFC! View fewer ads on the website just by signing up on TF Community.
Kotak Bank Froze My Account Without Notice & Forcing Me to Close It – Need Advice!
- Thread starter syed_ar0403
- Start date
- Replies 137
- Views 3K
I give them all the documents they want visit branch many times , they did kyc and verification all done but nothing work with them . They want costumer who open account and they freeze it and also want to grab your money. Actually when I visit branch for my account I saw there 10 more guy sitting already for the same account reason. Kindly visit kotak branch you will understand
No need. I am a Kotak customer for 16+ years and visited branch only once in all these years. I move lakhs every month from Kotak. Never faced any such issue.
And please don't state incorrect facts. They can't grab your money. Account is frozen so you can't access your money. Who's stopping you from closing your account and taking your money?
Don't understand one thing, when Kotak doesn't want you as a customer, why do you guys want to stick around with them. They are asking you to close your account, so close it take your money and say good bye. Why are you cribbing?
syed_ar0403
TF Select
I respect your experience with Kotak, but please understand not everyone’s case is like yours.
Just because you personally never faced any issue in 16 years doesn't mean thousands of customers facing freezes are wrong.
Kotak themselves admitted in their official responses that accounts are flagged by an automated transaction monitoring system for "profile mismatch" without any human verification initially.
Even after submitting valid documents, visiting branches multiple times, and explaining the transactions clearly, they still refuse to unfreeze.
It’s not about "grabbing" money maybe — but when you block someone’s account without valid reasoning, deny basic access to their own money for months, and force them to close the account without giving a proper chance to clarify, it becomes harassment.
Also, asking people to "just close and go" is unfair advice.
1) We have the right to fight when we are wronged.
2) We have the right to question unfair banking practices.
3) We have the right to access our hard-earned money without being treated like frauds without proof.
Please don't judge others' struggle based only on your personal good experience.
Banks must treat every customer fairly, not just high-value or long-time customers.
That should serve as your cue
Why are you letting them harass you? All you have to do is close the account and you take your money.
I hope you realize, it is not an advice. They are asking you to GO - LEAVE. They will not lose a customer without a valid reason. Just because they don't disclose it doesn't mean they don't have a valid reason. If you think you are right and they are wrong why don't you file an FIR and go to court?
"Struggle"??? Please don't undermine the word, we are talking only about a savings account.
syed_ar0403
TF Select
This is about basic consumer rights and fair treatment. Banks are custodians of our money — they cannot arbitrarily block access without transparency and accountability.
The issue is not closure — the issue is injustice. When a bank freezes an account purely based on system alerts, without proper verification, and refuses to fairly review documents submitted — it is a violation of basic banking ethics.
If they have a valid reason, why can’t they share it clearly in writing despite multiple escalations?
Simply saying "transaction mismatch" without proof, without specific transaction details, is not professionalism — it’s harassment.
Because banks are supposed to be regulated by RBI guidelines first.
Consumers expect banks and regulators to resolve matters fairly without pushing every small saver to courtrooms unnecessarily.
In fact, I have already exhausted all the official escalation routes:
🔹 Branch Level
🔹 Customer Care
🔹 Grievance Redressal
🔹 Nodal Officer
🔹 Principal Nodal Officer (PNO)
🔹 Social Media (Twitter escalation)
🔹 National Consumer Helpline (NCH)
🔹 RBI Ombudsman
🔹 CPGRAMS Portal
We are not simply coming here and debating for fun — we are fighting for our rights after going through every legitimate process.
When your hard-earned money is frozen for months without cause, when no one listens to your side, when you are forced to run between branch, grievance cell, nodal officer, and RBI without justice — it is struggle.
It’s easy to talk when you are not affected. But when it happens to genuine customers without fault, fighting back becomes a matter of principle — not ego.
NO. It is your CHOICE (and trust me just to keep it polite I did not use the actual term that I felt)
syed_ar0403
TF Select
I did not mean to argue unnecessarily, but when I read your repeated replies, it clearly feels like you are putting all the blame only on us, the customers.
That is why I am responding.
If you had just said — "Banks can also be wrong sometimes, and to avoid struggle and time waste, it is better to close the account and move on" — we would have simply understood it as a suggestion.
But you are repeatedly defending the bank's actions strongly, without considering the genuine struggles faced by customers.
That kind of one-sided support is what feels unfair to us.
Hope you understand my point.
Really? You still don't get it? Then you never will.
syed_ar0403
TF Select
It is okay.
I never expected you to understand our situation, because you have not faced what we are facing.
Just because you have not gone through it, does not mean the banks are always right and customers are always wrong.
Anyway, there is no point in arguing further.
Good luck to you.
RAMESH BABU N
TF Legend
I fail to understand a couple of simple things.
When K is unhappy to have your SB account, why worry ? Is it the only 1 bank in India ? Or, will one be so helpless/useless without that account ?
Each such aggrieved party here is out to prove that K is wrong n they are right. Why prove it so ? K's logic says otherwise. They (K) gave an easy way out to close n move onto other banks. No money lost.
Why crib n unnecessarily drag on n lose peace ? Better to use one's energy, time n efforts on better things in life than on a tainted SB account.
More so, when there is no monetary loss.
The guys must focus on AVOIDING such transactions in other SB accounts of theirs. Lest, they might face similar situations in future.
Instead of focusing on K, let them focus on what went wrong n how to avoid such trxns in future.
Remember that out of millions of SB accounts, only a few hundred (or may be 000s) accounts might have been frozen. Why not all SB accounts - if their (K's) logic is wrong or faulty.
Think with a cool head. And, act.
When K is unhappy to have your SB account, why worry ? Is it the only 1 bank in India ? Or, will one be so helpless/useless without that account ?
Each such aggrieved party here is out to prove that K is wrong n they are right. Why prove it so ? K's logic says otherwise. They (K) gave an easy way out to close n move onto other banks. No money lost.
Why crib n unnecessarily drag on n lose peace ? Better to use one's energy, time n efforts on better things in life than on a tainted SB account.
More so, when there is no monetary loss.
The guys must focus on AVOIDING such transactions in other SB accounts of theirs. Lest, they might face similar situations in future.
Instead of focusing on K, let them focus on what went wrong n how to avoid such trxns in future.
Remember that out of millions of SB accounts, only a few hundred (or may be 000s) accounts might have been frozen. Why not all SB accounts - if their (K's) logic is wrong or faulty.
Think with a cool head. And, act.
Last edited:
syed_ar0403
TF Select
Respectfully, you are generalizing the issue without understanding the specific situation.
✅ I already have a primary savings account with ICICI Bank where I have done lakhs worth of UPI and bank transactions over the years.
✅ ICICI has never frozen my account, never flagged normal family/self-transfers, and always followed fair practices.
The problem is not with "all banks" — the problem is specifically with Kotak 811 accounts, where they have a poor automated transaction monitoring system.
Even small self-transfers between my own accounts and family caused them to freeze the account without prior notice.
And yes, there may be millions of accounts, but even if 1000 customers face unfair freezing, that itself is injustice.
You cannot dismiss it just because it is a small percentage.
--> I am not "cribbing" — I am standing up for my rights.
--> Kotak never clearly told me what exactly was wrong. They just copy-pasted vague reasons and pushed for closure.
--> Banks are supposed to provide transparency, not just randomly freeze accounts based on poor system flags.
If my ICICI account can handle lakhs of genuine transactions without problem, but Kotak freezes for even basic self-transfers, it shows clearly where the real problem lies.
We are only asking for fairness and respect — not begging for any favor.
RAMESH BABU N
TF Legend
All the best in your journey for justice.
Keep us posted on the final outcome. Eager to know.
First of all no bank arbitrarily freezes account just for fun. There must be a mismatch in the income or profession stated on your form which doesn't correspond with your transactions.
Secondly most of the banks will not give u a reason for freezing the account under AML apart from transaction mismatch as it alerts the customer about the parameters for flagging such transaction. Tipping the customer about the potential parameters for avoidance of flagging under AML is an offense under at AML act
I am not saying that you have indulged into any activity I am just saying how the software might have adjudged your transactions.
Thirdly since you have provided the relevant documents as well as escalated the issue but still the bank is insisting on closure that means they are not convinced about your explanation. Like many have said before me that no bank wants to loose it's customer without a reason.
Now a days RBI is very strict on the AML act and penalises heavily for non compliance. That might be a reason that they don't want to risk activating the account.
Fourthly bank has not frozen your money for MONTHS. They frozen your money and told you to close the account and take back your money. It's is you who chose to keep on fighting for the unfreezing of the account. Fighting for something you feel is good but please don't say they have frozen it for months as it's your choice to keep fighting.
Fiftly - other banks with lots of transaction not freezing the accounts is not a valid reason for the current bank as there might be a difference in nature of transaction carried out in both banks. Income details and profession submitted at both the banks etc etc.
Lastly yes the bank might be wrong in freezing the account but kindly consider if it is worth the mental agony and hassle?
Please note that none of the above are directed at you personally. I learnt how banks analyse their customers the hard way when my credit card application was rejected by a Bank with no valid reason. After lots of escalation I came to know that it was rejected since I had no Credit history. This was long time back and at that time information was not readily available on net.
Do let us know how it goes as it will be a learning experience for all on us in case we come across such instance ourself in future.
Wish you all the very best.
Secondly most of the banks will not give u a reason for freezing the account under AML apart from transaction mismatch as it alerts the customer about the parameters for flagging such transaction. Tipping the customer about the potential parameters for avoidance of flagging under AML is an offense under at AML act
I am not saying that you have indulged into any activity I am just saying how the software might have adjudged your transactions.
Thirdly since you have provided the relevant documents as well as escalated the issue but still the bank is insisting on closure that means they are not convinced about your explanation. Like many have said before me that no bank wants to loose it's customer without a reason.
Now a days RBI is very strict on the AML act and penalises heavily for non compliance. That might be a reason that they don't want to risk activating the account.
Fourthly bank has not frozen your money for MONTHS. They frozen your money and told you to close the account and take back your money. It's is you who chose to keep on fighting for the unfreezing of the account. Fighting for something you feel is good but please don't say they have frozen it for months as it's your choice to keep fighting.
Fiftly - other banks with lots of transaction not freezing the accounts is not a valid reason for the current bank as there might be a difference in nature of transaction carried out in both banks. Income details and profession submitted at both the banks etc etc.
Lastly yes the bank might be wrong in freezing the account but kindly consider if it is worth the mental agony and hassle?
Please note that none of the above are directed at you personally. I learnt how banks analyse their customers the hard way when my credit card application was rejected by a Bank with no valid reason. After lots of escalation I came to know that it was rejected since I had no Credit history. This was long time back and at that time information was not readily available on net.
Do let us know how it goes as it will be a learning experience for all on us in case we come across such instance ourself in future.
Wish you all the very best.
Last edited:
syed_ar0403
TF Select
Thanks, but honestly — I stopped caring about Kotak long ago.
✅ I have solid accounts in ICICI, SBI, Union Bank, and AU.
✅ ICICI handles lakhs of rupees every month for me without any drama — two credit cards, seamless service.
✅ Kotak 811 was just a backup account — not even important enough to worry about.
Kotak's system is trash.
They freeze accounts like a machine — no human logic, no real checks.
No serious bank in India does this — only Kotak screws customers for no reason.
You defending Kotak just shows ignorance or hidden bias.
Maybe you work for them, maybe you don't care. Either way — your blind loyalty is part of the problem.
We are not crying to stay with Kotak — we are exposing a pathetic system that hurts innocent customers.
💬 I don't owe Kotak anything. They lost a customer forever.
💬 And people blindly supporting Kotak should seriously rethink what "customer rights" mean.
I will close the account and move on — not because Kotak asked, but because I don't deal with banks that treat customers like garbage.
syed_ar0403
TF Select
Thank you for your detailed explanation. you are neutral tone compared to others.
However, I would like to clarify a few things from my side:
1️⃣ Mismatch / AML Reasoning:
I fully agree that banks have the right to monitor under AML guidelines.
But in my case, no specific transactions were flagged or explained even once.
When I proactively submitted detailed transaction explanations (all self/family transfers) and KYC documents, Kotak never reviewed or discussed them — they just kept repeating "profile mismatch" blindly.
That is not proper due diligence, that is laziness.
2️⃣ Tipping the customer under AML:
I am not asking Kotak to reveal their entire risk system.
I only asked for basic fairness —
🔹 Which transactions raised red flags?
🔹 Why wasn’t I given a chance before freezing?
🔹 If they are rejecting my clarifications, at least tell me which explanation was not satisfactory.
This is basic customer communication, not tipping AML parameters.
3️⃣ Bank insisting on closure:
Yes, they insisted on closure —
but without allowing even one proper conversation about the transaction history after escalations.
If they already decided to close before even reviewing documents, it shows that the system is faulty, not that the customer is wrong.
4️⃣ Frozen money for months:
Technically true — they asked for closure.
But remember — customers are emotionally attached to their account credibility and banking rights.
Just because closure was offered, doesn't mean accept injustice quietly is the right solution.
If banks start freezing and pushing closure casually, one day even genuine salaried individuals will suffer.
5️⃣ Other Banks comparison:
I mentioned ICICI Bank where I have much higher volumes of transactions — all properly operated without freeze.
If Kotak flags simple self/family transactions while other major banks don't, it clearly reflects Kotak's poor risk algorithms, not necessarily customer’s mistake.
6️⃣ Mental agony vs Justice:
Yes, fighting costs mental energy.
But if customers never speak up against wrong practices, banks will never be held accountable.
I am not attached to Kotak — I am attached to fair banking principles.
⚡ In the end, yes, I will close the Kotak account — but after calling out this bad behavior so that other customers are warned.
Thank you again for your neutral explanation. Wishing you the best too.
Last edited:
That itself is considered tipping. Letting a customers know which transactions raised flag can be used by the customers to avoid getting flagged in future with the same bank as the algorithm will be the same.
That is the very reason lot of banks deny credit cards / loans saying that the application doesn't qualify according to internal credit policy. The sole purpose for this reply is not to let the applicant know about the exact parameters for approval. That is done so that the details are not manipulated to meet the parameters.
It may have been wrongly applied in your case but it is a fact that mostly innocent people have to suffer because of acts of a few.
I don't have any relationship with kotak but it's my humble advise from personal struggle that sometimes it's not worth it.
You might get monetary compensation if ruled in your favour by a consumer court (mental satisfaction as in my case) but now I believe it's not worth the time and mental peace which can be used somewhere more fruitful.
Just take it as a learning experience like I did and move on. There are a lot of banks out there (some you might already be banking with) that will provide better service and customer satisfaction. My simple funda is once you find a decent bank which gives you a decent banking experience stick with it and only go looking if there is no other option.
Last edited: