Apparently you have signed some form…………… ‘standing instructions’ to make the payment.
Debit all funds from all a/c and close all a/c with this bank.
You may go thru the copy (if maintained by you) and check the forms/procedure the bank has stated………….to cancel the standing instructions.
You seem to have informed the bank in time to stop the payment, however it is not clear if you have cited the ‘standing instructions’ or not.
The bank has made the payment to service provider and its action seems to recover it from you as it can’t recover from the service provider OR it doesn’t want to reverse the payment………………..and thus wants to transfer the onus on you.
From date of notice/date of supply of notice, you may determine how much notice is served upon you?
You may at once escalate to MD,Chairman,BM-CC division, with a copy to Governor-RBI, CGM-Dept. of Non banking Supervision of RBI, and demand that the notice of lien be withdrawn and no funds should be debited………………………….and erring officials of the bank be penalized with a copy of the penalty award to you….
Chief General Manager -in-Charge
Department of Non-Banking Supervision
Centre I, World Trade Centre, Cuffe Parade
Email id: email@example.com
Reserve Bank of India
Central Office Building
18th Floor, Shahid Bhagat Singh Road
and also issue legal notice by your lawyer.YOur counsel may opine after examining all docs on record that criminal complaint can also be lodged.
If facts prove that bank is deficient you can pull them to DCDRF also.
If you have stopped the service from service provider on record in writing then you can ask the service provider to refund the payment with a copy to you.