If you find a lien amount marked in your Bank of Baroda, you need to understand what that lien amount represents. Banks use a lot of significant and popular phrases that everyone should be aware of. And if you’re not sure what a lien is in banking, we can assist you to understand this lien amount and how to remove the lien amount in the Bank of Baroda and fd account in BOB.
What is Lien Amount in Bank of Baroda?
Lien is a form of lock, or you might say the name “Lien” stands for a lock that the bank has placed on your account. When you discuss the lien amount, you must first understand what that term means. The amount of a lien is a certain limit set by the bank authorities and locked in for a specific length of time. When your bank freezes a sum in your account, you won’t be able to do anything with it, such as withdraw it or try to use it anywhere, until the bank unlocks the account. The bank has complete jurisdiction to place a lock on the account’s entire balance and make it a lien amount.
Why Does BOB Block Your Amount as Lien?
There could be a plethora of reasons why a bank would freeze an account by marking it as a lien account and the amount as a lien amount. Below we give you some of the important reasons for a bank to do so.
- Every bank has its own set of terms and restrictions for keeping a minimum balance in an account. If the account holder fails to do so, he may be assessed a hefty penalty for failure to maintain the account. These charges are automatically deducted by the bank, and if the amount in the account is insufficient, the bank places a lien on the account.
- When an account holder fails to pay their EMI or loan installment on time, the bank may place a lien on their account in the amount of the EMI or loan.
- If the bank discovers any problems with Cheques or Drafts, it may place a lien on the account.
- If the bank detects any questionable activity on your account, it might be frozen and a lien placed on it.
- If you don’t pay your taxes, the bank may place a lien on your account.
- If you deposited an FD as collateral for a loan, you will be unable to withdraw any funds from the FD because the bank would place a lock on it or mark it as a lien amount.
How Can I Remove Lien Amount in BOB?
We’ll show you how to clear the lien amount in Bank of Baroda in this article. You can’t do anything with your account or the money in it if it’s been declared or recognized as the lien account and lien amount. That bank will not reset your account again unless you pay all of your bank debts. You won’t be able to do any transactions until then, such as withdrawing money or issuing checks; if you do, the cheques will bounce.
When you pay all of your debts at a Bank of Baroda branch, the bank will remove the lien from your account or sum. To resolve this issue, you will most likely need to go to the branch and inquire about the entire procedure. That will be a good option if you want to complete it quickly.
You can also seek assistance from the bank’s customer service department by calling them and inquiring about the problem. They will undoubtedly assist you, but keep in mind that you will not be able to remove the lien amount mark from your account unless you have made all of your account’s due payments.
How to get back Lien Amount in Bank of Baroda?
If the bank places a lien amount on your bank account due to an apparent system error or a technical error, you can go to the bank’s branch and ask them to fix the problem and answer your questions. The bank will be pleased to assist you as quickly as possible, and the issues will be resolved, and the lien amount mark will be erased from your account.
Also Read: How to Remove Lien Amount in HDFC Bank
It is not ideal for any customer or bank account holder at Bank of Baroda or any other bank to have their account marked as a lien amount because this would force you to lose access to that account. If you do not pay the penalty from that account, it will be withdrawn automatically from another account with the same bank, if you have one. And this will contribute t the draining of funds.
Lien marked on BOB Fixed Deposits
If you’re considering or planning to put money in your account as a security deposit against any of your fixed deposits from the same account, make sure the bank hasn’t designated your account or amount as a lien account or amount. And, as you are aware, the bank has complete jurisdiction to mark any account and any amount as a lien amount, so you must avoid breaking any of the bank’s rules and causing yourself difficulty.
That’s all there is to know about Bank Of Baroda or any other bank’s lien amount or account. I hope that this post may be of use to you in the situation that you encounter any difficulties. Also, if you need to know any additional information about this topic, please let us know in the comments. Your input is extremely useful to us. Thank you for taking the time to read this.