Are you a Bank of India customer? Do you have a bank account with this institution? As a result, you must be familiar with the banking terminologies used by banks to refer to various types of accounts, such as savings bank accounts, current bank accounts, and others. For example, not only the Bank of India, but every bank employs words like “Lien amount“.
Let’s take a closer look now. Do you understand what the Lien account means? What causes this, and what is the process for removing the lien amount from the account? We’ve included everything you need to know about the lien amount in BOI in this article.
What does “lien amount” in Bank of India mean?
The term lien refers to a lock that has been placed on your account. When it comes to the lien amount, you should be aware that it has been set aside by the bank for a defined period of time.
You won’t be able to withdraw or use the money until the lock is removed after the amount has been frozen. The bank has the option to place a lien on a certain sum or the total balance.
Reason why Bank of India puts a lien on the account?
Lien, in simple terms, implies securing the entire sum or a portion of it.
BOI or any other bank, for example, has the following lien rights:
- Right to Lien
- Specific lien
- General lien
Reasons why BOI puts a lien on the account –
- Nonpayment of loans’ interest and instalments
- Payments due on your credit card
- Arrears in locker rent
- Other obligations
- Amount set aside according to a court-issued lien order
- Amount set aside subject to an income tax attachment issued by the IRS, and so on.
- The requirement of a minimum account balance is now set in most bank accounts. As a result, if you do not maintain a minimum account balance, the bank will assess a penalty. Your bank will deduct the cost from your account if the account balance is considerably lower than the required minimum amount. If you don’t have enough money in your bank account to pay the penalty, the account will be recorded as a lien until you can pay the penalty.
- If you take out a loan and put your fixed deposit or term deposit up as collateral, your account will be marked as a lien, and you won’t be able to withdraw funds. After obtaining your permission, a lien will be placed on your account to prevent you from withdrawing any funds.
- If you don’t pay back the loan, the bank will put a lien on your account for that amount. As a result, most banks will be able to place a lien on the account. If you don’t pay on one account, they could put a lien on some other account in the same branch if you don’t pay.
- If you have problems with a draft or a cheque on your account, the bank can easily place a lien on that money until the problem is rectified.
- The bank has the right to freeze the entire account or place a lien on a particular sum in several instances. If you fail to pay your taxes or engage in any illegal activity, you may find it difficult to gain access to your account. To avoid your account being frozen, make sure you pay all of your taxes on time and submit all of your papers to the bank.
- When the bank software generates an error, you don’t have to worry because the bank will take care of it. To swiftly resolve the issue, you will need to visit the branch or phone customer support.
- Another key point to remember is that you have the ability to place a lien on your own account.
What is lien marked on BOI Fixed Deposit?
When you take a loan from a bank and put your FD (Fixed Deposit) as collateral, the bank creates a lien on that deposit, and when the deposit matures for payment or if you want to close it 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.
In the case of a general lien, the banker has the authority to place a lien on all deposits in the names of customers up to a particular limit if the account holder owes the bank money.
How to Remove Lien in BOI Account?
It is necessary to pay off all outstanding debts with your bank account. Take, for instance, BOI. If you’re a Bank of India customer, you’ll need to pay off any outstanding debts with the bank.
Once the money has been transferred to the bank. The lien amount will be deducted from your bank account automatically. You can also contact any prospective bank’s customer service department for assistance.
However, you won’t be able to clear the lien on any fixed deposits you’ve made on any loan until you’ve paid off the entire balance.
We have included all of the information on the lien amount in BOI, how to remove the lien, and why does the bank put a lien on the account in this article along with details on Fixed Deposit. If there are any further doubts or queries related to the same, please feel free to comment in the comment section below, and we would be happy to assist you.