What is a Lien Amount?
People ask questions about why I have a lien on my bank account and sometimes they ask why the bank put my amount on lien. How to remove lien from my bank account? Before going through the steps for removal we will try to understand the Lien at max.
A lien amount is an amount that is marked lien or held by the bank at the customer’s account as a security. This amount is typically a frozen or reserved amount that cannot be freely accessed or withdrawn by the account holder. By imposing a lien, the bank temporarily blocks access to the amount of funds in the account which is generally equivalent to the amount bank/ financial institution due to reasons which we will discuss in the later part. This ensures that the bank can recover the money if the account holder does not repay dues like loan EMIs, credit card bills, taxes etc. as per terms agreed upon.
We are here to make it easier for you and break down the lien amount and how to tackle this term. This guide also includes the steps to remove the lien amount from various bank accounts and how to check for the lien amount.
Let’s make it simple and easy to understand in the first part and then we will go in brief.
Definition:
A lien amount refers to a certain amount of money in your bank account that gets blocked or frozen by the bank.
Reasons for Lien:
Loan/credit card default
Minimum balance breach
Tax dues
Cheque bounce
Suspicious transactions
Loan against FD
How to Remove Lien:
Identify the reason for lien
Clear defaults/dues
Withdraw associated requests
Contact bank for errors
Make required payments
Delete linked cards/services
Importance of Lien Removal:
Resume account transactions
Avoid penalties
Access your own money
Maintain good credit
What is the Lien Amount?
A lien amount refers to the portion of funds in your account that is temporarily locked or frozen by the bank, making it inaccessible for a specific time. Although the amount remains in your account, you cannot withdraw or transfer it until the lien is lifted. The bank imposes this restriction based on certain conditions or obligations. There is no predefined limit for the lien amount; the bank can freeze any portion, including the full balance, as necessary.
What Does Lien Amount or Lien Marked Mean?
A lien mark on a bank account indicates that the account holder has authorized the lender or bank to restrict access to specific funds. This typically happens when the borrower has defaulted on payments or as a security measure for loans or investments. In cases of loans against mutual funds or other securities, the bank marks a lien on the corresponding units or assets until the loan is repaid. This ensures recovery of funds if the borrower fails to meet their obligations.
Reasons for Lien Amount in Banks
Here are common scenarios where banks impose liens on accounts:
- Loan Default: Failure to pay EMIs for loans can lead to a lien to cover the outstanding amount.
- Credit Card Defaults: Unpaid credit card bills may prompt a lien to recover the dues.
- Minimum Balance Penalty: Breaching the minimum balance requirement can result in a lien for the shortfall amount.
- Cheque Bounce: Repeated cheque bounces or failed transactions may trigger a lien to mitigate potential losses.
- Suspicious Activity: Banks may impose a lien if transactions appear suspicious, pending investigation.
- Tax Dues: Non-payment of income tax can lead to a lien as directed by tax authorities.
- Loan Against Fixed Deposit (FD): The FD amount is marked as a lien to secure repayment.
- Court Orders: Legal instructions from courts can mandate lien placement.
How to Remove a Lien Amount?
Follow these steps to remove a lien from your account:
- Identify the Cause: Determine why the lien was imposed (e.g., loan default, tax dues, or minimum balance issues).
- Clear Dues: Pay outstanding amounts for loans, taxes, or credit card bills.
- Resolve Linked Issues: If linked services like virtual cards or UPI caused the lien, disconnect or uninstall them.
- Update KYC: Complete pending KYC requirements to lift the lien.
- Contact the Bank: Speak to customer care or visit the branch for clarification and resolution.
- Escalate if Needed: If the issue persists, escalate the matter to higher bank authorities.
- Verify: Once resolved, confirm that the lien is removed and the account is fully accessible.
By proactively addressing the root cause and following up diligently with the bank, you can ensure the lien is lifted swiftly, restoring your account’s functionality.
How to Remove Lien Amount in SBI?
To remove a lien amount in SBI, you must initially get familiar with why the bank authority placed the lien mark.
Suppose the bank account is restricted by ASBA ( Applications Supported by Blocked Amount) mandated by SEBI for applying for an IPO. In that case, you will have to submit a request for withdrawal to the IPO registrar. However, if you don’t have any urgency, you can wait till the IPO allotment. The lien will be eliminated if you don’t receive the allotment for the requested IPO.
When the SBI bank lien marks your bank account for a virtual card, you can remove the lien right away by deleting the virtual card. You can also negotiate with the bank executive or terminate your card if the lien is associated with your credit card.
For all other cases like non-payment of taxes, skipped EMI towards SBI loan, etc., you will have to pay the default amount and applicable interest to lift the lien. Once you clear your dues, the bank will remove the lien.
Additionally, the lien mark can be due to any technical or system error. If that is the case, visit the nearest SBI bank branch, and ask the bank executive for the rectification.
If you don’t have any idea about why the bank has raised the line mark, contact the SBI bank executive and ask for an explanation.
Additionally, you can make an in-person visit to the SBI bank branch to query about the same. The bank executives will provide the relevant reason and how to resolve the lien mark.
You can call SBI’s 24X7 helpline number to resolve your query. 1800 1234, 1800 11 2211, 1800 425 3800, 1800 2100, or 080-26599990 are the toll-free numbers.
How to Remove the Lien Amount in a Kotak Bank Account?
If you are a Kotak Bank account holder and want to remove the lien amount in a Kotak bank account, you will have to start with the root cause. Figure out the reason for which the lien mark exists on your account.
If your Kotak Bank account is frozen by ASBA and regulated by SEBI towards an IPO request, you must withdraw your IPO to remove the lien mark. If not urgent, wait until the IPO allotment, as the lien mark will be lifted immediately after the allotment.
When Kotak Bank puts a lien mark on your account for a virtual card associated with the bank account, delete the card and remove the lien right away.
If the lien mark exists towards a credit card, you can either contact the Kotak bank executive or terminate your card to uplift the lien mark.
If the tax department sets the lien amount towards non-payment of taxes or skipped EMIs, repay the default amount, clear the taxes, and remove the lien.
Additionally, your bank account can be lien-marked because of a system error. To remove such a lien mark, make an in-person visit to the nearest Kotak bank branch and rectify it.
If you are not sure about the reason behind the lien mark, contact the Kotak bank executive and raise the query for the same. The bank executives will help you know the root cause of the lien mark and help you resolve the problem.
You can contact a customer care executive to inquire about the lien removal. Make a call on 1860 266 2666 to clear your queries. However, this is not a toll-free number, so local call rates will be applicable. The customer care executives are available from 9 am to 7 pm, Monday to Saturday.
How to Remove Lien Amount in ICICI Bank?
Unlock the key reason to remove the lien amount in the ICICI bank account. Understand why your account is lien marked and what is the lien amount. If you are already familiar with the key reason, resolve it to remove the lien amount.
- If an IPO request is the reason, withdraw your request. If lien removal is not urgent, wait until the IPO allotment, as the lien will be removed immediately.
- Pay your taxes and remove the lien amount if it is a tax lien.
- When the lien is associated with the virtual card, delete your card.
- If the bank has a lien mark for a credit card, terminate your card.
- Clear your dues when the account is lien marked due to skipped payments.
- One reason can be technical errors. Get in touch with the bank executive and resolve your problem.
You can either get in touch with the executive by calling the customer care number or can make an in-person visit to the nearest ICICI bank branch.
The toll-free customer care number of ICICI bank is 1800 200 3344. Get in touch with the customer care executive between 9 am to 6 pm from Mon. to Fri.
How to Remove Lien Amount in HDFC Bank?
If you don’t know why there is a lien mark, speak with your dedicated bank executive. If you visit the bank branch with your account on, you can call the customer care executive via a toll-free number.
If you know the reason, you can resolve it at your end without getting any rectification from the bank executives. Have a line mark because of credit card dues or skipped payments for the loan, clear your dues today. Your lien mark will be removed once you clear the pending payments.
If you haven’t paid your taxes by now, do it today. The reason can be the tax department, as you have lacked tax payments. If you have recently requested an IPO and since you have been lien marked, withdraw it by submitting a request to the IPO Registrar.
The HDFC bank toll-free number to contact the customer care executive is 1800 202 6161 and 1860 267 6161.
How to Remove Lien Amount in BOB Bank?
If you are a customer of Bank of Baroda and your bank account is lien marked, you can take several steps to remove it. Start by familiarising yourself with the reason for getting the lien marked. Understanding the reason is vital as the method to remove a lien may vary as per the key cause. Here is what you can do to remove the lien amount in BOB bank:
- If you have made an IPO request lately and faced this lien account issue, withdraw your request by writing to the IPO Registrar.
- Clear your pending taxes and the penalty amount to remove the lien from your bank account when it is a tax lien.
- If associated with a virtual card, delete the card, and the lien will be removed right away.
- If the BOB has put a lien mark on your account for a credit card, ask for the termination. If you have an unpaid credit card bill, clear it today.
- When the account is lien marked due to skipped loan payments, repay them to remove the lien mark from your account.
- One reason can be system errors. You can get in touch with the bank executive and ask them to remove the lien mark.
You can contact the executive by calling the toll-free numbers, i.e. 1800 258 44 55 or 1800 102 44 55. Additionally, you can make an in-person visit to the nearest Bank of Baroda branch.
No matter in which bank you hold your account, having a lien mark is not suitable because it disrupts the banking transaction from the account. So, if you face any such issues, get in touch with the bank executive to figure out the root cause. Once familiar with the reason, remove the lien mark from your account as soon as possible to reinitiate the transactions.
