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

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ajijul_93rahman said:
Thanks for your suggestions! My main concern is understanding why my transactions were flagged as unsatisfactory and why Kotak chose to freeze/close the account instead of resolving concerns. I’ve already asked for a written explanation and their policy on this.

but I believe it’s important to challenge such arbitrary actions to avoid similar issues in the future. Let’s see how they respond first!
Click to expand...
If you do self tranfer + more upi
Kotak was already banned and under scrutiny

These are for Current account
Banks are linent after upi because they too understand but if their algorithm Suspect it's game over
For any of us

Ealier people suffered from idfc algorithm
 
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hender said:
Are you in a position to take that out, if yes, take that out, Raise closure request, and get a official confirmation on email/branch letterhead and No dues kind of thing.

Go to SBI PBB branch (in case you have at your place)with Pan and aadhaar, open account with branch people.
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Yes, I can withdraw the remaining ₹3K. Once I submit the account closure form, they will transfer the balance to my mentioned account. I'll raise a closure request and ensure I get official confirmation via email or on the branch letterhead, along with a No Dues certificate.
 
ajijul_93rahman said:
Yes, I can withdraw the remaining ₹3K. Once I submit the account closure form, they will transfer the balance to my mentioned account. I'll raise a closure request and ensure I get official confirmation via email or on the branch letterhead, along with a No Dues certificate.
Click to expand...
But make sure, before FY end, so the any pending issue of current fy will not hamper future FY.
 
Vasuki said:
If you do self tranfer + more upi
Kotak was already banned and under scrutiny

These are for Current account
Banks are linent after upi because they too understand but if their algorithm Suspect it's game over
For any of us

Ealier people suffered from idfc algorithm
Click to expand...
Got it. Since Kotak's system flagged my transactions, I will close the account based on the suggestions here.
 
ajijul_93rahman said:
What happens if I don’t close it in this financial year and drag it to the next? Since I'm engaged with some work, I might not be able to visit the branch this month.
Click to expand...
You can raise request to kotak branch and Customer Care on mail as well.

In July 26, while you are filing return, why to carry burden of this FY as well.
 
ajijul_93rahman said:
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 87299

What Should Be My Next Step?
Should I escalate further or take legal action against Kotak for unjustified account freezing and lack of resolution?
Click to expand...
Is this a limited KYC or a full KYC account?
How old is the account?
What is the duration within which the above transactions took place?
 
hender said:
You can raise request to kotak branch and Customer Care on mail as well.

In July 26, while you are filing return, why to carry burden of this FY as well.
Click to expand...
sjmajumder said:
Is this a limited KYC or a full KYC account?
How old is the account?
What is the duration within which the above transactions took place?
Click to expand...
It is a full KYC 811 digital account, opened on 23-12-2023. The transactions in question took place between August 2024 and January 2025. Initially, I didn’t use the account much, but I started actively using it from August 2024 onward.
 
did OP open his/her account online or by visiting branch.....i have observed that banks do freeze accounts in case of account opened online....but if we visit branch...they dont....i have more than 1 cr debit/credit of transactions in a pvt bank for years now...every year crossing 1 cr...it's a savings account....but no freeze....nothing....
 
ccdc said:
did OP open his/her account online or by visiting branch.....i have observed that banks do freeze accounts in case of account opened online....but if we visit branch...they dont....i have more than 1 cr debit/credit of transactions in a pvt bank for years now...every year crossing 1 cr...it's a savings account....but no freeze....nothing....
Click to expand...
Yes, I opened this account completely through online KYC.

A

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

hender said:
You can raise request to kotak branch and Customer Care on mail as well.

In July 26, while you are filing return, why to carry burden of this FY as well.
Click to expand...
sjmajumder said:
Is this a limited KYC or a full KYC account?
How old is the account?
What is the duration within which the above transactions took place?
Click to expand...
It is a full KYC 811 digital account, opened on 23-12-2023. The transactions in question took place between August 2024 and January 2025. Initially, I didn’t use the account much, but I started actively using it from August 2024 onward.
 
ajijul_93rahman said:
It is a full KYC 811 digital account, opened on 23-12-2023. The transactions in question took place between August 2024 and January 2025. Initially, I didn’t use the account much, but I started actively using it from August 2024 onward.
Click to expand...
For a digital savings account, it has too many 3rd party credits over a very short period of time. It is very likely to get flagged and frozen. You should open a normal savings account by visiting branch if you plan to have such transactions.
 
ccdc said:
did OP open his/her account online or by visiting branch.....i have observed that banks do freeze accounts in case of account opened online....but if we visit branch...they dont....i have more than 1 cr debit/credit of transactions in a pvt bank for years now...every year crossing 1 cr...it's a savings account....but no freeze....nothing....
Click to expand...
Kotak 811 is a fully digital account. You cannot open it by visiting branch.
 
Vasuki said:
Ealier people suffered from idfc algorithm
Click to expand...
Opened a new IDFC account for parents. I need to move 10-15L funds through RTGS in their accounts.
Will it cause any issue?

Account was opened like a week ago. And visited branch for account opening. My RM helped them open account. No paperwork.
 
EnthuCC said:
Opened a new IDFC account for parents. I need to move 10-15L funds through RTGS in their accounts.
Will it cause any issue?

Account was opened like a week ago. And visited branch for account opening. My RM helped them open account. No paperwork.
Click to expand...
Account opening in idfc is always breeze
 
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