What is Lien Amount in sbi or any other bank account?
What is Lien Amount in sbi? How to clear Lien Amount in sbi? What is CIF Number? Can you see the mark of the lien amount in your SBI bank account? (also applicable for other banks) If yes then it is very important for you to know why this charged mark has been put on your account. So the first thing will be to understand what does this lien amount stands for and what the circumstances which are responsible for this action are.
Whether you are an SBI account holder or if you are one of the people who want to have a new SBI account. It is essential for you to have all the information about the SBI bank account and the Lien amount. There are so many people who do not have a clear idea of what the Lien amount is in SBI. But through the help of this article, you are going to get all the details about Lien to understand it.
It is not only for the SBI bank account holders but also for the other banks as well. So irrespective of which bank account you are holding if you see that your account is having the lien amount then you should definitely contact the bank and know the reason behind it.
Meaning of lien amount
Lien stands for a lock that has been put on your account. When it comes to the lien amount you should know that this particular amount has been locked by the bank for a specific time.
After the amount has been frozen you won’t be able to withdraw it or use it for any purpose until the lock has been removed. The bank has the right of putting the lien on a particular amount or on the entire balance.
Reasons why the bank is putting a lien
In Simple words, Lien means blocking the full amount or some
As an Example, SBI or any other Banks have the following rights of lien
- Right to lien
- Right to particular lien
- Right to a general lien
When you take a loan from a bank by putting the security of your FD (Fixed Deposit), the bank will make lien over that fixed deposit and at the time of the deposit matures for payment or if you want it to be closed before the maturity period, the amount will be adjusted towards clearing the liability in the loan account linked to the deposit and only the balance amount will be returned to you and this is known as a particular lien
When it comes to the general lien, the banker has the right to mark a lien on all deposits in the names of depositors up to a certain limit in case the depositor is liable to pay some amount to the bank
- Non-payment of interest and installments on loans
- Credit card dues
- Locker rent arrears
- Any other dues
- Amount earmarked as per the garnishee order issued by the court
- Amount earmarked as per the income tax attachment issued by the income tax department etc.,
- Most bank accounts nowadays are setting the requirement of the minimum account balance. So if you are not maintaining a minimum account balance, then the bank will charge an amount as a penalty. If the account balance is much lower than the requirement of minimum balance then your bank will be deducting the cost from the account. If you don’t have enough money in your bank account to pay the penalty, then the account will be remarked as a lien until you are putting enough amounts for paying the penalty.
- If you have taken a loan and you have offered the fixed deposit or term deposit as the security against the loan then your account will be marked as the lien and you won’t be able to withdraw the money from it. Here the lien will be put on the account after taking your permission so that you are not trying to withdraw any amount.
- If you fail to pay the loan amount then the bank will be placing a lien on the account for that particular amount. So, most of the banks will have the right of putting the lien on the account. If you fail to pay the amount from one account, then they can also put a lien on another account under the same branch.
- If you are facing any issues related to draft or cheque on the account then the bank can easily put the lien of that particular amount until the issue is resolved.
- In many cases, the bank has the right of freezing the entire account or put up a lien on some specific amount. If you fail to pay the taxes or you perform any unlawful activity then this might hinder your smooth access to the account. So make sure you are paying all the taxes on time and submitting the documents to the bank in order to stop your account from getting frozen.
- Sometimes the bank software may generate some error and that is when you don’t have to worry much because it will be resolved by the bank itself. You will have to visit the branch or call the customer care service to quickly resolving the issue.
Another important thing that you should be aware of is, you are also capable of putting a lien on your own account.
If you have a trading account then you can put a lien on the limit till which you want to make the transactions. If you are subscribing to the IPO then you can also mark the lien. This will help you to get enough funds after you are getting a lot with IPO.
Can one draw the lien amount?
No, one will not be able to withdraw the amount which has been marked lien until the person is settling the dues. Till the lien is getting lifted one will not be able to withdraw or use that amount and all the cheques that will be issued from that account will get bounced.
How one can clear the lien amount?
After the bank is marking the lien amount in sbi one will have to put the needed balance in that account. After settling all the liabilities, the bank will then lift the mark of lien from your account. After the lien has been settled one can easily utilize the additional funds in the account.
If you fail to settle all the liabilities that are the reason behind the lien then the amount of lien will be used for settling them. If you want to resolve any issue related to the lien then you will have to visit the home branch and then ask the officials to do it. You can also call the customer care service of your bank for settling the lien. If you have any other questions or queries regarding this topic then you can read faqs on sbi official website.
How one can get back the lien amount
Due to any minor mistake if the bank is putting the mark of lien on your account then you can visit the branch and ask them to solve the queries related to it. All the issues will be resolved by the bank and they will remove the charge of lien from your account.
Getting charged with a lien amount in sbi or any other bank is not a very good thing for any bank account holder because it will disrupt your transaction from that particular account. Moreover, if you fail to pay the money from one account then the money will be deducted from another account under the same branch and that is why it will help in money drainage.
If you are putting your account money as a safety deposit against any of your fixed deposits then you should ensure that your bank account is not charged with a lien amount. As the bank has the capability of stopping the entire activity in your account by putting the lien amount so it is very important to ensure that you are not breaking any rules.
FAQs of Lien Amount SBI
How can I clear my SBI lien?
If your SBI account has a lien amount due to ASBA and you want to clear and nullify it, the easiest way to do that is by sending a withdrawal request with the relevant issue to the registrar of the IPO. It does sound like a very complicated process but be assured that things aren’t as complicated as you think. If you can wait for some time, the lien amount should be removed in case you don’t get an allotment for the IPO.
Can I remove the lien amount in SBI online?
If you don’t want to go ahead with the process, the easiest way to terminate the transaction is by cancelling the virtual card. You can do so by tapping on the “Cancel Virtual Card” option. Once you do that, the marked lien amount will be released. Also, if you don’t cancel, the card will then expire within 48 hours and the lien amount will be released accordingly.
How do I clear a lien balance?
The easiest way to clear out a lien balance is by paying the creditor or the attorney what you owe in the process. Once the debt is settled, and the bank receives the notification for the same, you should get a notification with the message of how and when your funds will be released. Following that, you should be able to use your bank account as normal.
Is the lien amount refunded?
When you apply for an upcoming IPO, the application amount for the same is locked in your bank account. This means that you won’t be able to withdraw the amount from your account. This is the process termed “marking the lien”. This can be unlocked after the IPO goes live. If you don’t get an allotment, your lien amount will be refunded to your source bank account.
Can you unlock the lien amount in SBI?
If you received a message from the SBI about a lien amount in your account, the first step to rectify the issue is by going to the bank’s branch and asking them about the issue first. Depending on the amount and the issue, your bank will look into the subject and if it’s a system error, the same will be resolved as a minor mistake from the bank’s end.
However, if the issue isn’t the bank’s fault, you will need to talk to the bank’s employee about the issue and then get a resolution to solve the problem as soon as possible.
Does every SBI account holder get charged a lien amount?
The lien amount isn’t charged to every SBI account holder, so if you have received the message indicating the issue, it is likely due to an error or due to some other account activities or inactivity of the account.
If SBI wants to lock your account, then that’s when they will enable the lien amount to stop the transaction immediately. Ideally, we’d recommend that you discuss the issue with your bank manager to solve the issue without any further complications.