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?
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Kotak Bank Froze My Account Without Notice & Forcing Me to Close It – Need Advice!
- Thread starter syed_ar0403
- Start date
- Replies 134
- 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.
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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.
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