bankers right of lien


I have a query regarding Bankers right of lien.

I hold credit card of a bank.

Bank made a payment without my consent to a service which I don't take.

I have informed the bank imediatly at closer of cycle/service about "I have stopped taking service, made all payments" and still Bank made this payment for the service I already have not taken.

I refused to pay the bank, as I have stopped taking that service and I have informed the bank, "to stop payment" well before payment cycle starts, with clear reason as, "I have stopped taking this service" still bank made the payment.

I refused to pay to bank, and now bank has given me notice under "Bankers right of lien".

My query is, do they have such right, that even after customers written direction to, "not to make payment as I have stopped taking this service" and an objection on making such payment?


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 of Non banking Supervision of RBI, and demand that the notice of lien be withdrawn and no funds should be debited………………………….and erring officials of the bank be penalized with a copy of the penalty award to you….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
Central Office
Centre I, World Trade Centre, Cuffe Parade
Mumbai-400 005.

Phone: 022-22153350

Email id:


Reserve Bank of India
Central Office Building
18th Floor, Shahid Bhagat Singh Road
Mumbai-400 001.




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.




Hi Kumar,

am really grateful to you for your detailed response.

In fact; I gave writen direction to bank stating "I have stopped taking this service and I have made all payments. Do not make any further payments." on this direction I took acknowledgemet stamp signature from branck of the bank. After this bank made payment from my credit card without my notice for that service which I stopped. I got know this after I received my credit card statment. I imediatly dropped mail to bank with subject line, "misuse of my credit card by credit card department of bank". After this next month bank again made payment for the same. Same way again I send second mail to bank, this time I kept RBI and ambusman in cc. RBI replied me to settle case with bank. ambusman replied me to come phycally and file hard copy complint, which was not possible for me as taking leave for this was not possible for me. I convinienced myself that I have escalated issue and authority is not taking action. This is case of 2007. In January 2014 bank send me letter with title, ‘Lien marked on your bank account towards unpaid outstanding dues.’ bank sezed my account withdraw all money. This is my salary account, I had no option to move consumer forum, I have filed case.

My honest feeling is, if costomer has informed in writing to bank, not to cunduct any transction for him/her (and with clear reason, though not necessory!), bank still cunducts such transction and on such transction s/he has taken objection as this is without his/her knowledge and permission and is for nothing and this bank business is afecting him/her finacial losess. still bank makes further transctions.

so, my honest feeling is that in this senario bank can't enjoy Lien right. I tried to find any references I can understand. But alas I couldn't but fortunatly I found this forum and you replied my nicely. Please clear my doubt on this.


Bank can not withdraw more than outstanding amount from account on which it marked lien.

Bank can not make the payment if you have instructed it to stop the payment.

Bank can not charge you if any any payment is made by it without any authorization from you.


If you have filed consumer compalint then the matter shall unfold in forum.


Contest it on merits.


Your counsel may opine that civil suit with damages can be more rewarding and/or a criminal complaint can also be filed.


Hi Kumar,

Thanks a lot for raising my moral.

Will you please help me by providing me a specific reference/authority to mention in my say/ give weightage to it, regarding my point, "bank cannot enjoy lien right when customer has given written directions and objected on the payment made by the bank".

Here, to understand my situation, please allow me to mention that, I couldn't afford any counsel as it was too costly for me.

This is the real reason that I came here at you people.




You can search at GOOGLE, RBI website for decisions rendered by BO,


I am surprised to see your comments that:"I couldn't afford any counsel as it was too costly for me."


The fee in consumer court is too reasonable.

YOu could have asked around and visited the DCDRF and talked to lawyers.

The various consumer help groups,NGO's,consumer activists can help you at a fee that would be just peanuts............

e.g.: Mr. Narendra Wagle,

Dr. Prabhakar Kamath

Mr Bejon Misra

YOu can try other forums like AKOSHA, GRAHAK SHAKTI, VOICE society.................


You have the acknowledgment issued by the bank and that should suffice.................

The matter shall unfold in DCDRF............







Hi Kumar,

Tons of thanks...I

Really I owe you.






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