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

[ali4u]

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?

Neither they unfreeze it nor closing it, what it means ?

 

[RAMESH BABU N]

Neither they unfreeze it nor closing it, what it means ?

It could mean many things.

If instructions were received from police, income tax n other such state or central authorities.... or any type of court directions.... or any type of deep investigation process.... or.... may be some loan lien marked against it.... or.... Any of many other such reasons.

Each case is different n needs to be looked into.

Can not generalise n deduce.

 

[ali4u]

It could mean many things.

If instructions were received from police, income tax n other such state or central authorities.... or any type of court directions.... or any type of deep investigation process.... or.... may be some loan lien marked against it.... or.... Any of many other such reasons.

Each case is different n needs to be looked into.

Can not generalise n deduce.

No sir there is nothing like that , just said transaction mismatch, asking for income documents, I did a business transaction from current account and transfer money into kotak savings account from own current account 50 k transaction, I give them itr and GST number even farm account number and bank statement, they did verification and all but nothing work with them , it's not just about me I met many people with same problem in branch , they are also having same issues .in my opinion SBI was worst bank but after kotak mahindra bank experience, I rate it worst bank , branch is 35 kilometres from my address, i cannot visit branch very often , they don't care can't solve your problem

 

[syed_ar0403]

It could mean many things.

If instructions were received from police, income tax n other such state or central authorities.... or any type of court directions.... or any type of deep investigation process.... or.... may be some loan lien marked against it.... or.... Any of many other such reasons.

Each case is different n needs to be looked into.

Can not generalise n deduce.

You are again blindly supporting the bank without understanding the facts.

We have already clarified no police, income tax, court order, or loan lien is involved here.

The bank itself clearly admitted that their internal transaction monitoring system flagged the account — that’s it.
There is no external authority instruction involved at all.

If Kotak truly had any government or legal reason to freeze the account, they are bound to inform the customer formally.
But they never did.
They are hiding behind vague excuses like "transaction mismatch" flagged by their faulty system.

Still defending Kotak’s broken system again and again only shows bias.

Learn to differentiate between:

• Customer doing illegal activity (where external authorities get involved)
• Bank's own poor internal automated system wrongly flagging genuine accounts.

Here, the second case clearly happened.
Blaming customers without facts is simply wrong.

 

[RAMESH BABU N]

You are again blindly supporting the bank without understanding the facts.

We have already clarified no police, income tax, court order, or loan lien is involved here.

The bank itself clearly admitted that their internal transaction monitoring system flagged the account — that’s it.
There is no external authority instruction involved at all.

If Kotak truly had any government or legal reason to freeze the account, they are bound to inform the customer formally.
But they never did.
They are hiding behind vague excuses like "transaction mismatch" flagged by their faulty system.

Still defending Kotak’s broken system again and again only shows bias.

Learn to differentiate between:

• Customer doing illegal activity (where external authorities get involved)
• Bank's own poor internal automated system wrongly flagging genuine accounts.

Here, the second case clearly happened.
Blaming customers without facts is simply wrong.

That was my response to that chap who wanted to know ".... what it means". I told what it means. I am not blaming that chap nor siding with the bank.

Do not get over the edge. And, avoid accusing.

 

[RAMESH BABU N]

No sir there is nothing like that , just said transaction mismatch, asking for income documents, I did a business transaction from current account and transfer money into kotak savings account from own current account 50 k transaction, I give them itr and GST number even farm account number and bank statement, they did verification and all but nothing work with them , it's not just about me I met many people with same problem in branch , they are also having same issues .in my opinion SBI was worst bank but after kotak mahindra bank experience, I rate it worst bank , branch is 35 kilometres from my address, i cannot visit branch very often , they don't care can't solve your problem

Which branch n what's the PIN code n the State ?
Is it a Rural or SemiRural or Urban branch ?

 

[syed_ar0403]

That was my response to that chap who wanted to know ".... what it means". I told what it means. I am not blaming that chap nor siding with the bank.

Do not get over the edge. And, avoid accusing.

It is easy to casually say “maybe this, maybe that” when you are not the one facing the injustice.

Let’s be very clear:

Kotak itself stated that the freeze was because of their internal transaction monitoring system detecting a "profile mismatch" — NOT because of any police, court, tax, or investigation orders.

There is no lien, no legal action, no external agency involvement — only Kotak's own faulty internal judgment.

When questioned, Kotak kept shifting reasons — from transaction mismatch, to address verification failure, to High Value, to business activity, to customer untraceable, to RCU not satisfied, to income proof not provided— proving that their system and process are broken and they have no real grounds to freeze ordinary customers' accounts.

This is not some "general inquiry" about what it could mean — this is real harassment faced by genuine customers, backed by clear facts.

So before defending Kotak blindly, try to understand — this is not theory. This is happening on the ground.

You may not care because it’s not happening to you, but when basic banking rights are denied without justification, it is everyone's problem.

 

[RAMESH BABU N]

It is easy to casually say “maybe this, maybe that” when you are not the one facing the injustice.

Let’s be very clear:

Kotak itself stated that the freeze was because of their internal transaction monitoring system detecting a "profile mismatch" — NOT because of any police, court, tax, or investigation orders.

There is no lien, no legal action, no external agency involvement — only Kotak's own faulty internal judgment.

When questioned, Kotak kept shifting reasons — from transaction mismatch, to address verification failure, to High Value, to business activity, to customer untraceable, to RCU not satisfied, to income proof not provided— proving that their system and process are broken and they have no real grounds to freeze ordinary customers' accounts.

This is not some "general inquiry" about what it could mean — this is real harassment faced by genuine customers, backed by clear facts.

So before defending Kotak blindly, try to understand — this is not theory. This is happening on the ground.

You may not care because it’s not happening to you, but when basic banking rights are denied without justification, it is everyone's problem.

Chill...

What's the use of repeating your outburst here. Don't be a cry baby here. All grown up guys. Deal with that bank.

Settle the issue there. Just because you posted your issue here, does not mean that we all will support you (bor that bank). Nor, that issue will be settled in your favour.

Already nearly 150 posts were there in this thread. READ ALL OF THEM AGAIN, because you are the effected party.

Try to follow the advices given by all others. If you can, that is.

Don't waste your time, resources here. Go to that bank n settle the issue.

 

[ali4u]

Which branch n what's the PIN code n the State ?
Is it a Rural or SemiRural or Urban branch ?

Urban branch 244001 up

 

[Arnal07]

Thanks, but honestly — I stopped caring about Kotak long ago.

✅ I have solid accounts in ICICI, SBI, Union Bank, and AU.
✅ ICICI handles lakhs of rupees every month for me without any drama — two credit cards, seamless service.
✅ Kotak 811 was just a backup account — not even important enough to worry about.

Kotak's system is trash.
They freeze accounts like a machine — no human logic, no real checks.
No serious bank in India does this — only Kotak screws customers for no reason.

You defending Kotak just shows ignorance or hidden bias.
Maybe you work for them, maybe you don't care. Either way — your blind loyalty is part of the problem.

We are not crying to stay with Kotak — we are exposing a pathetic system that hurts innocent customers.

💬 I don't owe Kotak anything. They lost a customer forever.
💬 And people blindly supporting Kotak should seriously rethink what "customer rights" mean.

I will close the account and move on — not because Kotak asked, but because I don't deal with banks that treat customers like garbage.

For peace of mind, I would suggest you to close Kotak account, take the money and open premium savings ac (like classic,preferred banking) by visiting HDFC branch.You will get better service and much better credit cards compared to kotak.

 

[syed_ar0403]

Chill...

What's the use of repeating your outburst here. Don't be a cry baby here. All grown up guys. Deal with that bank.

Settle the issue there. Just because you posted your issue here, does not mean that we all will support you (bor that bank). Nor, that issue will be settled in your favour.

Already nearly 150 posts were there in this thread. READ ALL OF THEM AGAIN, because you are the effected party.

Try to follow the advices given by all others. If you can, that is.

Don't waste your time, resources here. Go to that bank n settle the issue.

I already gave up on this issue long ago — I’ve moved on. But when more affected people started posting here, I responded. The problem is, you guys blindly backing the bank without understanding the facts of this thread — that’s the only reason I engaged in this argument. I neither need your advice nor approval. Period.

 

[syed_ar0403]

For peace of mind, I would suggest you to close Kotak account, take the money and open premium savings ac (like classic,preferred banking) by visiting HDFC branch.You will get better service and much better credit cards compared to kotak.

Thanks for the suggestion. I’ve already moved on long ago — Kotak was just a backup account. My primary account is with ICICI where I’ve been doing lakhs worth of transactions and also have credit cards without any issues. I’m only replying here because some people blindly defend Kotak’s faulty monitoring system without knowing the facts — that’s what I’m pushing back against.

 

[SJM]

Where there's smoke, there's fire

 

[hender]

Thanks, but honestly — I stopped caring about Kotak long ago.

✅ I have solid accounts in ICICI, SBI, Union Bank, and AU.
✅ ICICI handles lakhs of rupees every month for me without any drama — two credit cards, seamless service.
✅ Kotak 811 was just a backup account — not even important enough to worry about.

Kotak's system is trash.
They freeze accounts like a machine — no human logic, no real checks.
No serious bank in India does this — only Kotak screws customers for no reason.

You defending Kotak just shows ignorance or hidden bias.
Maybe you work for them, maybe you don't care. Either way — your blind loyalty is part of the problem.

We are not crying to stay with Kotak — we are exposing a pathetic system that hurts innocent customers.

💬 I don't owe Kotak anything. They lost a customer forever.
💬 And people blindly supporting Kotak should seriously rethink what "customer rights" mean.

I will close the account and move on — not because Kotak asked, but because I don't deal with banks that treat customers like garbage.

Thank you for your detailed explanation. you are neutral tone compared to others.

However, I would like to clarify a few things from my side:

1️⃣ Mismatch / AML Reasoning:
I fully agree that banks have the right to monitor under AML guidelines.
But in my case, no specific transactions were flagged or explained even once.
When I proactively submitted detailed transaction explanations (all self/family transfers) and KYC documents, Kotak never reviewed or discussed them — they just kept repeating "profile mismatch" blindly.
That is not proper due diligence, that is laziness.

2️⃣ Tipping the customer under AML:
I am not asking Kotak to reveal their entire risk system.
I only asked for basic fairness —
🔹 Which transactions raised red flags?
🔹 Why wasn’t I given a chance before freezing?
🔹 If they are rejecting my clarifications, at least tell me which explanation was not satisfactory.

This is basic customer communication, not tipping AML parameters.

3️⃣ Bank insisting on closure:
Yes, they insisted on closure —
but without allowing even one proper conversation about the transaction history after escalations.
If they already decided to close before even reviewing documents, it shows that the system is faulty, not that the customer is wrong.

4️⃣ Frozen money for months:
Technically true — they asked for closure.
But remember — customers are emotionally attached to their account credibility and banking rights.
Just because closure was offered, doesn't mean accept injustice quietly is the right solution.
If banks start freezing and pushing closure casually, one day even genuine salaried individuals will suffer.

5️⃣ Other Banks comparison:
I mentioned ICICI Bank, SBI, Union Bank where I have much higher volumes of transactions — all properly operated without freeze.
If Kotak flags simple self/family transactions while other major banks don't, it clearly reflects Kotak's poor risk algorithms, not necessarily customer’s mistake.

6️⃣ Mental agony vs Justice:
Yes, fighting costs mental energy.
But if customers never speak up against wrong practices, banks will never be held accountable.
I am not attached to Kotak — I am attached to fair banking principles.

⚡ In the end, yes, I will close the Kotak account — but after calling out this bad behavior so that other customers are warned.

Thank you again for your neutral explanation. Wishing you the best too.

I already gave up on this issue long ago — I’ve moved on. But when more affected people started posting here, I responded. The problem is, you guys blindly backing the bank without understanding the facts of this thread — that’s the only reason I engaged in this argument. I neither need your advice nor approval. Period.

1-Your anger and discomfort with Kotak, I can understand.

2- You have WONDERFUL power to explain your self precisely.

2-By DNA - Kotak 811
Online 0mab.
seems not like regular account to me.

3- Many people here along with @RAMESH BABU N Sir, @SJM BOSS
they have so much of experience - in many aspects.( Own Job, Banking CC and otherwise,) I try to understand and learn, what they are saying.
If they have may be 50-100 cards or CC limit of above 2CR, have won many cases with bank/RBI - doesn't mean, I fit in the same league.

I have one HDFC CC 2 SB A/C with lowest variant of DC - Classic.

@bug_88
Shared in depth views, many things I can say, pure experience.

Lastly yes the bank might be wrong in freezing the account but kindly consider if it is worth the mental agony and hassle?

My simple funda is once you find a decent bank which gives you a decent banking experience stick with it and only go looking if there is no other option.

4- My perspective is to learn/understand something real, (not ChatGPT(AI) knowledge)

Highlighting key takeaways ☝️
Rest upto you....

 

[SJM]

It's not as simple as you suggested here , kindly visit once at branch , submit account closure farm 2 times , still either they are not unfreeze the account or closing it , always facing technical problem, I am not a single person there many people having similar issue with them , at there helpdesk at branch ,

You have not stated this anywhere earlier (unless I missed). Your complaint was primarily they are asking you to close your account.

Now, if you are saying you have visited branch twice and submitted account closure form twice and still they are unable to close your account, what action have you taken on that?

My suggestion:
Visit once more and try once more.
If it doesn't work, speak to BM.
Still not able to close account, submit written complaint to BM and take an acknowledged copy (duly stamped and signed) of the same.
Use the Ack to complaint to PNO (maybe after 7 days) and to RBIO after 30 days.

 

[syed_ar0403]

1-Your anger and discomfort with Kotak, I can understand.

2- You have WONDERFUL power to explain your self precisely.

2-By DNA - Kotak 811
Online 0mab.
seems not like regular account to me.

3- Many people here along with @RAMESH BABU N Sir, @SJM BOSS
they have so much of experience - in many aspects.( Own Job, Banking CC and otherwise,) I try to understand and learn, what they are saying.
If they have may be 50-100 cards or CC limit of above 2CR, have won many cases with bank/RBI - doesn't mean, I fit in the same league.

I have one HDFC CC 2 SB A/C with lowest variant of DC - Classic.

@bug_88
Shared in depth views, many things I can say, pure experience.


4- My perspective is to learn/understand something real, (not ChatGPT(AI) knowledge)

Highlighting key takeaways ☝️
Rest upto you....

I absolutely respect what experienced members here are sharing — especially those suggesting to close the account and move on. I already made up my mind to do that a long time ago.

But my concern is only with those blindly supporting the bank without knowing the actual facts or how Kotak’s faulty monitoring system works. That’s what I’m responding to — not fighting for unfreezing anymore.

At the end of the day, I’ve moved on — I just believe customers deserve fairness, and someone has to call out unjust practices.

 

[hender]

I absolutely respect what experienced members here are sharing — especially those suggesting to close the account and move on. I already made up my mind to do that a long time ago.

But my concern is only with those blindly supporting the bank without knowing the actual facts or how Kotak’s faulty monitoring system works. That’s what I’m responding to — not fighting for unfreezing anymore.

At the end of the day, I’ve moved on — I just believe customers deserve fairness, and someone has to call out unjust practices.

am not a Kotak expert, but what I understand so far is -
1- Few things which seems fair to us, are not fair in the eye of Kotak.
2- you have all the skills of Jolly LLB 3, Once convinced - you can fight till last mile.
3- Hope you will help people to get Justice ⚖️.
Doesn't matter who is agree with you, doesn't matter who is with you....