Is it true that we shouldn't transact more than five times a month in a savings bank account?

[rj_arora]

Guys, I had a terrible experience today at Axis Bank. They blocked my savings account three days ago. Credit is allowed, but I can't debit any money. I went to the branch today to confront them, and the manager told me this -

Allegation 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month.
My view: this is the first time I've heard about this five transaction limit a month. I mean, how is it possible that the government is promoting digitisation and, at the same time, limiting people to use their savings account only five times a month? Isn't it weird?

Allegation 2: the manager was asking me how I was getting money credited to my account so many times. I clearly told him that I had transferred the money from my own ICICI account to my Axis account many times and then transferred it to my own Zerodha/Paytm money as I had linked my Axis account to the broker. Also, my mother and my friends sent me money totalling 4-5 times the previous month, and 3-4 were miscellaneous credits. But he was trying to scare me by saying that I was speaking so much in front of him, but I wouldn't be able to utter a single word against the income tax department.
My view: What does the income tax department have to do with this? I mean, is it illegal to take money from friends? And all of this is white money. They are transferring the money from their bank account to my bank account, right? It's not even cash. How did the income tax department come into the picture? I have no idea. There are a total of 73 debits + credits in my account. I don't know how high it is.

Some other transaction level details:

I received a total of 6.17L from my own other bank accounts in 11 transactions.
I received a total of 86K (my own Business income, declared in ITR, too) in 2 transactions.
I received a total of 1.1Lakh from friends/family in 8 transactions.
All these were IMPS/UPI. All online, bank-to-bank transfers.
The remaining 50 transactions were debit transactions, mainly to my broker account and vendors/shops/friends, etc.

Now, to resolve this, he's asking me to write on a page that I will use my savings account less frequently in the future and that I won't repeat this behaviour when I am doing multiple transactions in my account. Also, he is asking me to write the purpose of the credits in my account and why the money was credited from my friends and from my mother to my account.
What do you guys think I should do here? Has anyone else faced this before?

cc: @TechnoFino @Subhankar @ashwink @S S V @4uziaul @007 @alphadark7 @bhavyegoel

 

[quino]

The money stuck is about 13K. No urgent requirement as such

if that's the case, i suggest to write an email to your zonal nodal office (a/c to this document), respectfully explaining everything. if possible refine the above text using chatgpt. and remove the below line.

mention the person name & branch name in the email.

I am pretty sure I will close my account with Axis after such behaviour, but please unfreeze my account first so that I can take my money out.

 

[sid16]

@sm9811911 @Pankhuri @sid16 @Bugs Bunny and other friends too,
What do you think? Should I mail the higher authorities or not?

This is my draft email, which I just completed:
Respected Sir/Ma'am, My Axis Bank savings account (Account Number: XXX, Branch IFSC XXXX) was frozen some days ago. Credits are allowed, but I can't debit my money. I went to the branch today to unfreeze my account, but the operations manager told me this -
Reason 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month in savings accounts.
My view: This is the first time I've heard about this five transaction limit a month. Can you give me in writing or show me where RBI has stated this five transactions a month limit?

Reason 2: the manager was asking me how I was getting money credited to my account many times. I clearly told him that I had transferred the money from my own other bank accounts to my Axis account many times. Also, my relatives and friends sent me money from their bank accounts, totalling around 8 to 9 times the previous month. But he was trying to scare me by saying that I was speaking in front of him, but I wouldn't be able to utter a single word against the income tax department. Also, I have to give him in writing that these are not business incomes.
My view: I mean, what kind of behaviour is this? How can he scare me by bringing the IT department into this? I mean, is it illegal to take money from friends and relatives for the short term (all bank-to-bank transfers, no cash transfers), which I will anyways return to them in the future? How did the IT department come into the picture? I have no clue at all. Moreover, who gave him the power to question the nature of transactions? When have banks started to track whether a credit was a business credit or a non-business credit and freeze accounts based on that? Can you please educate me here?

Finally, for the resolution/unfreezing process, he asked me to give him in writing that these credit transactions were non-business in nature (Again, I have no idea whether he is even authorised to ask this) and that I would use the bank account little in future and would make very few transactions.
I am pretty sure I will close my account with Axis after such behaviour, but please unfreeze my account first so that I can take my money out.
Looking forward to a swift resolution here.
Regards

In my opinion, at the onset you should not write an email which sounds like a direct complaint against the BM. He will make it even more difficult for you to get your money back. At the onset, you should write a shorter version of this which just says that you are maintaining relationship with Axis Bank since so many years. Your account has been debit frozen without any prior intimation. No details have been provided in writing regarding why your account is frozen. Ask them to unfreeze your account immediately. Have BM, PNO and RBI in this email. BM will get the hint that this matter is escalating but you have not directly complained against him. Maybe this will get the work done.

 

[Bugs Bunny]

@sm9811911 @Pankhuri @sid16 @Bugs Bunny and other friends too,
What do you think? Should I mail the higher authorities or not?

This is my draft email, which I just completed:
Respected Sir/Ma'am, My Axis Bank savings account (Account Number: XXX, Branch IFSC XXXX) was frozen some days ago. Credits are allowed, but I can't debit my money. I went to the branch today to unfreeze my account, but the operations manager told me this -
Reason 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month in savings accounts.
My view: This is the first time I've heard about this five transaction limit a month. Can you give me in writing or show me where RBI has stated this five transactions a month limit?

Reason 2: the manager was asking me how I was getting money credited to my account many times. I clearly told him that I had transferred the money from my own other bank accounts to my Axis account many times. Also, my relatives and friends sent me money from their bank accounts, totalling around 8 to 9 times the previous month. But he was trying to scare me by saying that I was speaking in front of him, but I wouldn't be able to utter a single word against the income tax department. Also, I have to give him in writing that these are not business incomes.
My view: I mean, what kind of behaviour is this? How can he scare me by bringing the IT department into this? I mean, is it illegal to take money from friends and relatives for the short term (all bank-to-bank transfers, no cash transfers), which I will anyways return to them in the future? How did the IT department come into the picture? I have no clue at all. Moreover, who gave him the power to question the nature of transactions? When have banks started to track whether a credit was a business credit or a non-business credit and freeze accounts based on that? Can you please educate me here?

Finally, for the resolution/unfreezing process, he asked me to give him in writing that these credit transactions were non-business in nature (Again, I have no idea whether he is even authorised to ask this) and that I would use the bank account little in future and would make very few transactions.
I am pretty sure I will close my account with Axis after such behaviour, but please unfreeze my account first so that I can take my money out.
Looking forward to a swift resolution here.
Regards

Definitely man you should. Just write a bit more professional email

 

[rj_arora]

In my opinion, at the onset you should not write an email which sounds like a direct complaint against the BM. He will make it even more difficult for you to get your money back. At the onset, you should write a shorter version of this which just says that you are maintaining relationship with Axis Bank since so many years. Your account has been debit frozen without any prior intimation. No details have been provided in writing regarding why your account is frozen. Ask them to unfreeze your account immediately. Have BM, PNO and RBI in this email. BM will get the hint that this matter is escalating but you have not directly complained against him. Maybe this will get the work done.

But what if they give in writing that it was frozen due to too many transactions? Then will I be able to complain against the manager, since I have already met the manager before sending this email?

 

[sid16]

But what if they give in writing that it was frozen due to too many transactions? Then will I be able to complain against the manager, since I have already met the manager before sending this email?

If that is really the reason, then anyway you have to cooperate with the bank to get your account unfrozen. That would mean that the BM was right in his reasoning. First you need to see what reason they give in writing and then prepare further actions.

 

[Bugs Bunny]

If that is really the reason, then anyway you have to cooperate with the bank to get your account unfrozen. That would mean that the BM was right in his reasoning. First you need to see what reason they give in writing and then prepare further actions.

I don't think any bank would give that in writing. Mind you the transactions were digital not cash.

 

[sid16]

I don't think any bank would give that in writing. Mind you the transactions were digital not cash.

Then they would have no reason to keep his account frozen. 🙂

 

[Pankhuri]

@sm9811911 @Pankhuri @sid16 @Bugs Bunny and other friends too,
What do you think? Should I mail the higher authorities or not?

This is my draft email, which I just completed:
Respected Sir/Ma'am, My Axis Bank savings account (Account Number: XXX, Branch IFSC XXXX) was frozen some days ago. Credits are allowed, but I can't debit my money. I went to the branch today to unfreeze my account, but the operations manager told me this -
Reason 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month in savings accounts.
My view: This is the first time I've heard about this five transaction limit a month. Can you give me in writing or show me where RBI has stated this five transactions a month limit?

Reason 2: the manager was asking me how I was getting money credited to my account many times. I clearly told him that I had transferred the money from my own other bank accounts to my Axis account many times. Also, my relatives and friends sent me money from their bank accounts, totalling around 8 to 9 times the previous month. But he was trying to scare me by saying that I was speaking in front of him, but I wouldn't be able to utter a single word against the income tax department. Also, I have to give him in writing that these are not business incomes.
My view: I mean, what kind of behaviour is this? How can he scare me by bringing the IT department into this? I mean, is it illegal to take money from friends and relatives for the short term (all bank-to-bank transfers, no cash transfers), which I will anyways return to them in the future? How did the IT department come into the picture? I have no clue at all. Moreover, who gave him the power to question the nature of transactions? When have banks started to track whether a credit was a business credit or a non-business credit and freeze accounts based on that? Can you please educate me here?

Finally, for the resolution/unfreezing process, he asked me to give him in writing that these credit transactions were non-business in nature (Again, I have no idea whether he is even authorised to ask this) and that I would use the bank account little in future and would make very few transactions.
I am pretty sure I will close my account with Axis after such behaviour, but please unfreeze my account first so that I can take my money out.
Looking forward to a swift resolution here.
Regards

You are giving too much info unncessarily.

As someone else pointed out, just mail the bm and cc no/pno asking why the debit is frozen in your account. Don't mention your visit to the bank.

But if you want to mail to higher authorities, this is still too long. I would cut all the info out.

Just draft a mail saying that you had a bad experience in so and so branch. The branch manager was very unprofessional in behavior and tried to coerce you to write a letter. Mention that you visited the bank because there is a debit freeze on the account and you wanted to enquire about the reason and a possible resolution. This kind of behavior is not acceptable from an employee of a private bank let alone a BM.

Someone from the pno office would call you if they need all the nitty gritty. Do record that call if it comes.

 

[AritraSaha]

Guys, I had a terrible experience today at Axis Bank. They blocked my savings account three days ago. Credit is allowed, but I can't debit any money. I went to the branch today to confront them, and the manager told me this -

Allegation 1: There were too many transactions in my savings account. That's why their system flagged the account. They told me to use my account like a savings account and not like a current account. The manager clearly told me that RBI has directed the banks not to allow more than five transactions per month.
My view: this is the first time I've heard about this five transaction limit a month. I mean, how is it possible that the government is promoting digitisation and, at the same time, limiting people to use their savings account only five times a month? Isn't it weird?

Allegation 2: the manager was asking me how I was getting money credited to my account so many times. I clearly told him that I had transferred the money from my own ICICI account to my Axis account many times and then transferred it to my own Zerodha/Paytm money as I had linked my Axis account to the broker. Also, my mother and my friends sent me money totalling 4-5 times the previous month, and 3-4 were miscellaneous credits. But he was trying to scare me by saying that I was speaking so much in front of him, but I wouldn't be able to utter a single word against the income tax department.
My view: What does the income tax department have to do with this? I mean, is it illegal to take money from friends? And all of this is white money. They are transferring the money from their bank account to my bank account, right? It's not even cash. How did the income tax department come into the picture? I have no idea. There are a total of 73 debits + credits in my account. I don't know how high it is.

Some other transaction level details:

I received a total of 6.17L from my own other bank accounts in 11 transactions.
I received a total of 86K (my own Business income, declared in ITR, too) in 2 transactions.
I received a total of 1.1Lakh from friends/family in 8 transactions.
All these were IMPS/UPI. All online, bank-to-bank transfers.
The remaining 50 transactions were debit transactions, mainly to my broker account and vendors/shops/friends, etc.

Now, to resolve this, he's asking me to write on a page that I will use my savings account less frequently in the future and that I won't repeat this behaviour when I am doing multiple transactions in my account. Also, he is asking me to write the purpose of the credits in my account and why the money was credited from my friends and from my mother to my account.
What do you guys think I should do here? Has anyone else faced this before?

cc: @TechnoFino @Subhankar @ashwink @S S V @4uziaul @007 @alphadark7 @bhavyegoel

Bank can freeze your account is transaction amount is High.(special if you declare low income at the time of account opening) but there no 5 tranx per month limit to a nomal non bsbda account.

BM making you a 🐑

Do a complaint against him. and after all this Sega close savings account in axis bank.. less headache..

 

[Pankhuri]

But what if they give in writing that it was frozen due to too many transactions? Then will I be able to complain against the manager, since I have already met the manager before sending this email?

Having a correct reason does not give the bm a carte blanche to behave unprofessionally. If too many transactions are a problem, then he needs to mention that and be done. What is a letter gonna do here? It's not like you are requesting to close the cc or account that a written document at least starts some process. Here it is useless.

 

[helloworld]

Btw,

Debit Freeze is just a safety measure developed by bank to avoid unethical use of that account. If a particular system sees high volume of transactions suddenly, for safety they do debit freeze until savings holder conveyed that it is for personal use etc. by given written letter to BM.

Its just that banks systems identified huge cash deposits and withdrawl from our account all of sudden out of nowhere.

You can easily sort things between you and BM, IMO. Even then just give him you'll do 5 transactions only, unfreeze and close the account by withdrawing money.

 

[BVCBVC is verified member.]

I have heard this by my RM for HDFC bank that only 5 transactions are allowed per month in my HDFC Preferred account. But they didn't block my account.

 

[rj_arora]

Respected Sir/Ma'am, My Axis Bank savings account (Account Number: XXX, Branch IFSC: XXX, Branch name: Axis Bank, XXX) was frozen some days ago. Credits are allowed, but I can't debit my money.I have been maintaining a relationship with Axis Bank since so many years but suddenly, my account has been debit frozen without any prior intimation.Please give the reason in WRITING why my account has been frozen.I am looking forward to a swift resolution here.
Regards,

Does this look good for a starter? @sid16 @Pankhuri @Bugs Bunny
I will cc NO and PNO too

 

[rj_arora]

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Btw,

Debit Freeze is just a safety measure developed by bank to avoid unethical use of that account. If a particular system sees high volume of transactions suddenly, for safety they do debit freeze until savings holder conveyed that it is for personal use etc. by given written letter to BM.

Its just that banks systems identified huge cash deposits and withdrawl from our account all of sudden out of nowhere.

You can easily sort things between you and BM, IMO. Even then just give him you'll do 5 transactions only, unfreeze and close the account by withdrawing money.

There was not a single cash deposit though. All online, using UPI/IMPS

 

[rj_arora]

- Could you tell me your account type in axis bank, I meant program name (Burgundy, Privilege etc.)?

Normal one, 5k MAB

 

[sid16]

Respected Sir/Ma'am, My Axis Bank savings account (Account Number: XXX, Branch IFSC: XXX, Branch name: Axis Bank, XXX) was frozen some days ago. Credits are allowed, but I can't debit my money.I have been maintaining a relationship with Axis Bank since so many years but suddenly, my account has been debit frozen without any prior intimation.Please give the reason in WRITING why my account has been frozen.I am looking forward to a swift resolution here.
Regards,

Does this look good for a starter? @sid16 @Pankhuri @Bugs Bunny
I will cc NO and PNO too

Also ask them to unfreeze the account immediately. Instead of "so" many years, mention the approximate number of years. Instead of "Please give the reason in WRITING", say please give me the exact reason and rule under which my account has been frozen. The reply is anyway going to be a written one.

 

[Pankhuri]

Respected Sir/Ma'am, My Axis Bank savings account (Account Number: XXX, Branch IFSC: XXX, Branch name: Axis Bank, XXX) was frozen some days ago. Credits are allowed, but I can't debit my money.I have been maintaining a relationship with Axis Bank since so many years but suddenly, my account has been debit frozen without any prior intimation.Please give the reason in WRITING why my account has been frozen.I am looking forward to a swift resolution here.
Regards,

Does this look good for a starter? @sid16 @Pankhuri @Bugs Bunny
I will cc NO and PNO too

Remove the writing, it seems unnecessary. This is short and to the point. Good to get the ball rolling.

 

[helloworld]

There was not a single cash deposit though. All online, using UPI/IMPS

unusually high... let's say whatever the transactions you did to cause this debit freeze did you do that earlier with more or less same transactions resulting same amount? transaction type anything.

and what is your profile in bank account as student, self-employed, salaried etc.?

 

[rj_arora]

I have been maintaining a relationship with Axis Bank for 3 years, but suddenly, my account has been debit frozen without any prior intimation.
I request you to please unfreeze the account immediately and give me the exact reason and rule under which my account has been frozen.
I'm looking forward to a quick solution here.


Is this fine? @sid16 @Pankhuri

 

[rj_arora]

unusually high... let's say whatever the transactions you did to cause this debit freeze did you do that earlier with more or less same transactions resulting same amount? transaction type anything.

and what is your profile in bank account as student, self-employed, salaried etc.?

I think it should be salaried(not sure though), where can I check this?