The issue of indiscriminate bank account freezes is becoming increasingly prevalent. Recently, Federal Bank froze the account of a school in Chemmad, Malappuram, after a guardian paid fees. Despite the school’s pleas for the disputed amount of Rs 13,200 to be withheld and the debit freeze to be lifted, their requests have fallen on deaf ears.
Sadly, the victims of such freezes have found little recourse. Those who have turned to the courts have found justice to be slow and elusive, while others have written to the Reserve Bank of India, the banking regulator, with little effect.
As Onmanorama concludes its three-part series on account freezes, it appears that the options for victims are bleak. As the article notes, there is seemingly no one to rein in anonymous police officers who can send a note from anywhere in the country to prompt overzealous banks in Kerala to freeze accounts in a jiffy.
The situation is dire, and those affected by these account freezes are left with few options. As one victim notes, ‘We are like sitting ducks, waiting for our accounts to be frozen, without any fault of ours.’ It is clear that more needs to be done to address this issue and protect innocent account holders from such indiscriminate freezes.
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