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

 

[aashuuuu]

Bro, I don't want to spend this much energy recording him and taking panga with the whole branch 😛
I just want to unfreeze my account without giving up to his unfair demands by giving him something in writing.
I will anyways close the account after it is unfreezed.

Anyone has to take a step.
If not taken on time , that shit hole will get more confident and abuse others too. The Art of Letting Go has got these shitbags out of their pants.

 

[RAMESH BABU N]

Yes, sir, that is fine. I have a CA and will be filing ITR anyway; no worries about that.

But after reading the email that I sent to NO/PNO, I just want to make sure that the Bank officials don't have any special powers that they use to highlight this specific case to ITD; that's it. This is the only thing I want to ensure.

Unlike other jobs - which are driven by rules n regulations n guidelines - a Banker has much more freedom n flexibility in making decisions - through DISCRETION.

Using his discretion, he may initiate or may just ignore. No one can n will question it. Even RBI can't do anything.

Only BANKING books/subject is known as - BANKING - LAW and PRACTICE.

Laws n practices could vary - vary significantly - depending on the discretion.

Don't get into litigation. By listening to those who has absolutely no idea about banking. Leave alone compliance n discretion. Banking is not like a software job.

 

[aashuuuu]

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.

Brother. If some Ahole is getting out of pants he needs to be treated that way. OP isn't in urgent need of funds. That asshole can't keep the account on freeze for long. If he does, more the freeze time better the compensation. OP has nothing to lose in this case.

 

[aashuuuu]

They don't have any grounds to report.
If bm want to report it anyway , he'll report it. Most likely 99.9%case he won't. They're also here to do business. If they keep troubling the customers, then no one will open account with them. Moreover taking complaint back will not have any effect on this..
So chill out a bit. & wait for reply from PNO

If he does, if obviously would be against the rules of reporting, you have a added complaint of personal vengeance and harassment too against BM and Axis as a organisation. You can also involve the Police too.

 

[rj_arora]

Unlike other jobs - which are driven by rules n regulations n guidelines - a Banker has much more freedom n flexibility in making decisions - through DISCRETION.

Using his discretion, he may initiate or may just ignore. No one can n will question it. Even RBI can't do anything.

Only BANKING books/subject is known as - BANKING - LAW and PRACTICE.

Laws n practices could vary - vary significantly - depending on the discretion.

Don't get into litigation. By listening to those who has absolutely no idea about banking. Leave alone compliance n discretion. Banking is not like a software job.

No, No, Sir, no litigation. It's not that big of a matter. I won't go into litigation, courts, etc, at all.
If it is resolved by the email which I sent, then it is fine. Else, I will do what the bank manager said (To provide him with a letter stating I won't make many transactions etc)

 

[Lobogris]

hard to believe. Any source?

What I have found is this (only for HNI with income >1cr): https://www.livemint.com/money/pers...-tax-evasion-details-here-11698668947055.html

Income of just 1cr makes you an HNI! That's a ridiculously low threshold. Talking from IT point of view. Someone with just 10 crores invested would top that.
Instead of appreciating a person for paying tax, they want to harass him further by additional scrutiny. If my income were 1.05 crores and there was a way of concealing it, I would be tempted to report 80 or 90 lakhs just to avoid this additional, needless scrutiny. A totally stupid policy. A person declaring say 5 crores income is already paying a lot of tax. Instead of further harassing him, they should go after millions who are not paying any tax or are grossly under reporting.

 

[Lobogris]

True bro. Same here, I also want a good sleep at night. So, I won't take the money and invest in future, but abhi jo kiya hai, usse to koi issue nhi hoga na?

Nothing will happen with ITD for such small amounts. Don't worry about that aspect. Just work on making your account operational.

 

[rj_arora]

[UPDATE:]
Hey, All, I just received this reply from PNO. They didn't even address my complaint regarding the operations manager 🤦🏻‍♂️.
What should I do? I guess I have to do what the manager originally said.

 

[Lobogris]

Yes, sir, that is fine. I have a CA and will be filing ITR anyway; no worries about that.

But after reading the email that I sent to NO/PNO, I just want to make sure that the Bank officials don't have any special powers that they use to highlight this specific case to ITD; that's it. This is the only thing I want to ensure.

They are unlikely to highlight it. Even if they do, IT will do nothing. They don't have the capacity or competence to look into everything.

 

[leonneel]

Icici will close ur account without notice and give no warning and all.

In my axis acct if it crosses 15txn count per month extra charges were levied so closed the axis account.

My indusind select acct is at risk of getting frozen for doing 30L worth of txn this year. Got a call from indusind branch, also got a letter stating that I need to visit branch with business details to convert it to current account. If I don't comply within a week they will freeze the acct.

That's that. I do money rotation heavily

 

[ccdc]

True bro. Basically, I took money from friends and invested in the stock market. I've already returned the money to them today, from my salary + breaking my FD. The total amount taken from them in the past month was around 1.6L only, which must be peanuts for ITD.

cc: @Guidence

kindly dont do such transactions...........you never know when you might be violating PMLA.....dont ever take money from friends and invest anywhere...they can do it themselves.

 

[rj_arora]

kindly dont do such transactions...........you never know when you might be violating PMLA.....dont ever take money from friends and invest anywhere...they can do it themselves.

Sure bro, won't repeat. Also, I was investing for myself, not for them 😛

 

[sid16]

[UPDATE:]
Hey, All, I just received this reply from PNO. They didn't even address my complaint regarding the operations manager 🤦🏻‍♂️.
What should I do? I guess I have to do what the manager originally said.

The point is that regardless of the attitude of the BM, indeed your account is blocked because of unusual transactions flagged by the system of Axis Bank. This is the official response. I suggest getting hold of someone at the desk of the branch, not the BM, and just get the paperwork done from him. Do not engage or argue further with them. People will get you gassed up to fight with the branch, but in reality it is better to keep a cool head and just get your work done. Some people could have the bandwidth to fight with higher officials, but I feel it's a waste of time.

 

[rj_arora]

The point is that regardless of the attitude of the BM, indeed your account is blocked because of unusual transactions flagged by the system of Axis Bank. This is the official response. I suggest getting hold of someone at the desk of the branch, not the BM, and just get the paperwork done from him. Do not engage or argue further with them. People will get you gassed up to fight with the branch, but in reality it is better to keep a cool head and just get your work done. Some people could have the bandwidth to fight with higher officials, but I feel it's a waste of time.

Sure, will go to the branch tomorrow and provide the documents.

 

[ccdc]

Sure bro, won't repeat. Also, I was investing for myself, not for them 😛

ok i thought you were investing for them.....

 

[sid16]

For a moment, keep the bad attitude of the BM aside and think about what has been written by PNO. A lot of hacking goes on these days. Your profile is of a salaried person. If really too many inflow and outflow of unknown entities is happening, especially entities which are themselves flagged in their system, the bank will try to protect your account. Feels like a standard procedure. Not siding with the bank here, the BM's bad attitude is unjustified, but just get the process done.

 

[Lobogris]

Don't worry. It's not a crime to borrow a few lakhs. No one cares for such small amounts.

 

[aashuuuu]

Unlike other jobs - which are driven by rules n regulations n guidelines - a Banker has much more freedom n flexibility in making decisions - through DISCRETION.

Using his discretion, he may initiate or may just ignore. No one can n will question it. Even RBI can't do anything.

Only BANKING books/subject is known as - BANKING - LAW and PRACTICE.

Laws n practices could vary - vary significantly - depending on the discretion.

Don't get into litigation. By listening to those who has absolutely no idea about banking. Leave alone compliance n discretion. Banking is not like a software job.

Sir, With due respect . A banker is not a Judicial Officer who has go by his own discretion. There are a few rules which need to be followed irrespective of who that person is. BM of Axis or Chairman of Axis. Freezing account is a precautionary measure but that doesn't allow him to ask the source of money. That is not his job. Everyone has to do their job even if they have some discretionary powers.

 

[aashuuuu]

The problem nowadays with this forum is people come here crying after getting bullied from bankers to know their rights but aren't ready to fight for them. If this individual(OP) is ready to do what the BM told at first place, what is the use then coming here and wasting everyone else's time.

 

[Tejo]

Sir, With due respect . A banker is not a Judicial Officer who has go by his own discretion. There are a few rules which need to be followed irrespective of who that person is. BM of Axis or Chairman of Axis. Freezing account is a precautionary measure but that doesn't allow him to ask the source of money. That is not his job. Everyone has to do their job even if they have some discretionary powers.

Dada is an ex-banker of psu banks.

Now you are gonna teach him ??