Want to know what the lien amount in HDFC bank is? Today in this article I will explain to you the various reasons why your bank might place a lien on your account, and what you should do to remove it.
Is your account encumbered by a bank lien? Seeing a charge with the word ‘lien amount’ on it?
Maybe you already have an HDFC account or want to open a new HDFC account. It is critical that you have all of the details regarding the HDFC bank account and the Lien amount. There are a lot of people who don’t understand what the Lien amount in HDFC is. However, with the assistance of this article, you will be able to learn just about everything there is about Lien. This article describes what a lien amount is, the various reasons why your bank might place a lien on your account, and what you should do about it. The below details are applicable to any bank not just limited to HDFC.
Lien Amount in HDFC Bank
A lien is an act of putting a lock on something. As a result, the lien amount is the amount on which the bank has placed a hold. That amount is frozen, and you cannot withdraw or use it until the lien is removed.
The bank may place a lien on a certain amount in an account or they can also place a lien on the entire account.
Also Read: How to Remove Lien Amount in SBI Bank
When does the bank put a lien?
The bank may place a lien on the funds to secure them for one of the following reasons:
- Noncompliance with minimum balance requirements –
Minimum balance requirements apply to the majority of bank accounts. Banks impose penalties for noncompliance. If someone’s account balance falls below the required minimum, the bank will charge them the penalty and deduct the charges from their account automatically. If the customer’s account does not have enough balance to cover the penalty, the bank will place a lien on it for that amount.
- Fixed Deposits as Loan Security
If you have submitted your term deposits/ FDs as loan security, they will be marked as lien and you will not be able to withdraw them.
- Bounced/non-payment of loan EMI
If you miss a loan payment, the bank may put a lien on your account for the amount owed. Several banks have the authority to place a lien on their customers’ accounts. As a result, if you miss a payment, they can place a lien on money in your other bank account.
- Problem with a cheque or drafts that you placed
If there is a problem with a cheque or drafts that you deposited, the bank can place a lien on that amount until it is rectified.
- Suspicion of illegal conduct
In this scenario, the bank may freeze your entire account. Alternatively, a lien may be placed on a certain sum. Nonpayment of taxes is an example of this.
- Bank software error
This does happen from time to time. You do not need to be concerned; the situation can be fixed.
A lien might also be placed on your account. You can set a limit for your trading account by marking a lien. You can also place a lien when you subscribe to an IPO. This is to ensure that if you are assigned to that IPO, you have sufficient capital.
Can you withdraw the money from the lien?
No. You won’t be able to withdraw the lien money until you pay off your debts. You won’t be able to withdraw or utilize the lien amount until it’s lifted, and cheques written on that account might bounce.
How to Remove Lien Amount in HDFC Bank?
You can deposit the required balance in the account once a bank has marked a lien amount. The bank will release the lien once you have paid off your debts. You can use the extra funds in your account after you’ve paid off the lien.
If you don’t pay the debts for which the lien has been placed, the lien money will be utilized to pay them.
Going to your home branch and asking them what to do is the easiest way to handle any lien amount problem. If you are unable to visit a branch, you may contact the bank’s customer service department.
The bank may place a lien on your property on behalf of a third party to whom you owe money (lien-holder). In this situation, the bank will put a lien on your property for several days while you go to court to resolve the matter. If you do nothing or the court rules against you, the bank will pay the lien-holder the amount of the lien.
Lien marked on Hdfc Bank FD
If a lien is placed on FDs to secure a loan, the lien will remain in place until the loan is repaid. Fixed Deposit Lien marking means that your FD is associated with another product and FD can only be removed if the other product fees are cleared. This could happen with the credit card or with any other credit on the basis of your FD guarantee. Alternatively, if you did not pay any ICICI bank dues, you can file/lock your FD to retire to clear your dues in advance of FD retirements.
How do I reclaim the cash owed to me as a result of a lien?
If the bank has placed a lien on your property due to an error, go to the bank and inquire about it. The bank will then take care of the problem and release the lien.
Today we discussed what the Lien amount is in HDFC bank, what it signifies and how can we resolve it. If you have any further queries or doubts. Please feel free to get in touch with us below in the comment section and we will make sure we reply back to your queries.