A few people on the TF Community have posted threads about their IDFC First Bank accounts being placed under debit freeze or total freeze for minor reasons. Many others have commented on these threads, sharing that they too have faced similar issues, and that their issues have not been resolved despite contacting the bank. Let me explain this issue in detail and bring it to light. IDFC First Bank has shown a commitment to listening to customers in the past, and I hope this time they will also work to resolve this issue for their customers.
IDFC First Bank is a modern, digital-focused bank offering services that make it easy to open a savings account entirely online. With IDFC First, you can complete the process via video KYC without ever needing to visit a branch. I personally appreciate IDFC First Bank's digital services—I have held a wealth relationship with them and in last three years never needed to visit my branch even once.
The Issue:
Many people have opened their IDFC First savings accounts online, even if they don’t have a branch nearby. IDFC First allows this because a branch isn’t necessary for most everyday banking needs; nearly everything can be handled through their mobile app. For many customers, especially those relying on UPI, this convenience is ideal.
However, a major issue arises when IDFC First freezes accounts—either restricting debit transactions or fully freezing the account—based on high volumes of UPI transactions. This policy can be confusing, as it's common to use UPI to pay multiple vendors in a market, which naturally results in several transactions. This shouldn’t pose an issue, yet many account holders report freezes on their accounts due to frequent UPI use.
Additionally, some freezes have reportedly been triggered by multiple transactions with the same merchant using a debit card. This restriction, too, has caused inconvenience for account holders using their accounts for regular spending needs.
Customer Experience & Frustrations
After this restriction, IDFC First Bank requires you to visit a branch to complete verification and unfreeze your account. However, many people opened their accounts online and don’t have a branch nearby; some have reported that their nearest branch is over 500 km away.
Even for those who manage to visit a branch and complete the verification, the issue isn’t always resolved. For instance, one of my relatives, whom I recommended IDFC First Bank to, has faced a debit freeze issue for over a year. Despite branch employees visiting his residence and completing a physical home verification, his account remains frozen, leaving his money stuck with IDFC First Bank.
A Request to IDFC First Bank
We ask that IDFC First avoid restricting accounts solely based on moderate (e.g., 10-15 daily) UPI transactions or similarly routine usage. This is common practice for many people and should not raise red flags. Additionally, we urge the bank to simplify the unfreeze process, particularly for customers who don’t live near a branch, to ensure that people can access their funds when they need them.
IDFC First Bank is a modern, digital-focused bank offering services that make it easy to open a savings account entirely online. With IDFC First, you can complete the process via video KYC without ever needing to visit a branch. I personally appreciate IDFC First Bank's digital services—I have held a wealth relationship with them and in last three years never needed to visit my branch even once.
The Issue:
Many people have opened their IDFC First savings accounts online, even if they don’t have a branch nearby. IDFC First allows this because a branch isn’t necessary for most everyday banking needs; nearly everything can be handled through their mobile app. For many customers, especially those relying on UPI, this convenience is ideal.
However, a major issue arises when IDFC First freezes accounts—either restricting debit transactions or fully freezing the account—based on high volumes of UPI transactions. This policy can be confusing, as it's common to use UPI to pay multiple vendors in a market, which naturally results in several transactions. This shouldn’t pose an issue, yet many account holders report freezes on their accounts due to frequent UPI use.
Additionally, some freezes have reportedly been triggered by multiple transactions with the same merchant using a debit card. This restriction, too, has caused inconvenience for account holders using their accounts for regular spending needs.
Customer Experience & Frustrations
After this restriction, IDFC First Bank requires you to visit a branch to complete verification and unfreeze your account. However, many people opened their accounts online and don’t have a branch nearby; some have reported that their nearest branch is over 500 km away.
Even for those who manage to visit a branch and complete the verification, the issue isn’t always resolved. For instance, one of my relatives, whom I recommended IDFC First Bank to, has faced a debit freeze issue for over a year. Despite branch employees visiting his residence and completing a physical home verification, his account remains frozen, leaving his money stuck with IDFC First Bank.
A Request to IDFC First Bank
We ask that IDFC First avoid restricting accounts solely based on moderate (e.g., 10-15 daily) UPI transactions or similarly routine usage. This is common practice for many people and should not raise red flags. Additionally, we urge the bank to simplify the unfreeze process, particularly for customers who don’t live near a branch, to ensure that people can access their funds when they need them.
